I understand that as of today, NASDAQ is an exchange. Anyone have any comments on what is the impact of that to us as traders? Cash
http://www.nasdaqtrader.com/trader/er/eroverview.stm From General FAQ: NASDAQ EXCHANGE REGISTRATION FREQUENTLY ASKED QUESTIONS Updated July 27, 2006 SUMMARY AND INTRODUCTION On January 13, 2006, The Securities and Exchange Commission (SEC) approved NASDAQâs amended application to register The NASDAQ Stock Market® as a national securities exchange. On June 30, 2006 the SEC approved NASDAQâs phased approach to exchange operation. Also on June 30, 2006, the SEC approved changes to NASD rules to reflect NASDAQâs exchange registration and approved operation of the Trade Reporting Facility. NASDAQ plans to become operational as an exchange in NASDAQ-listed issues on August 1, 2006 (Phase I of exchange operation), and in other exchange-listed issues on October 1, 2006 (Phase II of exchange operation). During the interim period prior to August 1, 2006, NASDAQ will continue to function as a subsidiary of NASD. Once NASDAQ is ready to operate as an exchange, NASDAQ in its current form, The NASDAQ Stock Market, Inc., will become a holding company and a newly formed subsidiary, The NASDAQ Stock Market LLC, will begin to operate as a national securities exchange. Exchange registration is primarily a change in legal status for NASDAQ as opposed to a change in the way NASDAQ operates. It allows NASDAQ to operate its trading facilities independently without being subject to control by the NASD. REGISTRATION What does it mean that NASDAQ is registering as a national securities exchange? Once NASDAQ is operating as a national securities exchange, it will have legally changed its registration status from a subsidiary of a national securities association registered under Section 15A of the Securities Exchange Act (Exchange Act) to an independent company registered with the SEC as a national securities exchange under Section 6 of the Exchange Act. NASDAQ will operate under the same statutory terms as other exchanges such as the New York Stock Exchange. Wasnât NASDAQ always a national securities exchange? NASDAQ has operated under NASDâs self-regulatory organization (SRO) status as a national securities association. Although there are minor distinctions between a national securities exchange and a national securities association, in practical terms, there is little that is different between the two. NASDAQ functionally operates very much like an exchange now. Why is NASDAQ becoming an exchange? ⢠Exchange registration allows NASDAQ to operate as an independent self-regulatory organization (SRO) without being controlled by NASD. Currently, NASDAQ is a subsidiary of NASD, and as a subsidiary, NASDAQâs authority to operate a market is delegated by NASD. In order for NASDAQ to separate from NASD and to obtain SRO status, NASDAQ must register as a stand-alone exchange. ⢠As an SRO, NASDAQ will have its own rules regarding trading, listing, membership, and regulation and will have the authority to interpret these rules. Updated 07/27/06 ⢠NASDAQâs new status as an exchange will eliminate any appearance of conflicts of interest stemming from NASDâs control of NASDAQ and its role as regulator of NASDAQâs market participants. ⢠Becoming an exchange will eliminate some disparate treatment of securities listed on NASDAQ because they are not considered âexchange-listedâ. Some state laws accord securities âlisted on an exchangeâ more favorable treatment than other securities (e.g., laws prescribing that financial institutions, pension funds and insurance companies may invest their reserves only in âexchange-listedâ securities). What exactly will change when NASDAQ begins to operate as an exchange? Very little. As NASDAQ completes its separation from NASD and becomes a stand-alone enterprise, it will move from under NASDâs SRO umbrella and establish its own SRO status. As an SRO, NASDAQ will have its own rules and will be able to interpret those rules. While NASDAQ already operates like an exchange, there will be two key changes when NASDAQ formally operates as an exchange: ⢠NASDAQâs transaction facilities will be separated from the over-the-counter trade reporting facilities (ACT). NASDAQâs transaction execution services, such as the NASDAQ Market Center, Brut, and INET, will be operated under NASDAQâs exchange license. And, NASDAQ plans to offer trade reporting through the Trade Reporting Facility (TRF), a new limited liability company operated by NASDAQ that will continue to be subject to NASDâs regulatory license and oversight. ⢠NASD members that currently operate as order-entry firms, market making firms, or electronic communications networks (ECNs) in the NASDAQ Market Center will need to register as NASDAQ members in order to use the NASDAQ Market Center trading system and other NASDAQ services. Will NASDAQ still be subject to SEC oversight? NASDAQ will continue to be subject to SEC oversight. As an SRO, NASDAQ ultimately will be responsible for member and market regulation related to its members. NASDAQ has contracted with NASD Regulation to provide both member and market regulation capabilities............