Nasdaq Stock Market Inc. today received unanimous approval from the SEC to operate as a national securities exchange, according to a news release from Nasdaq. The approval will allow Nasdaq to complete its separation from the NASD and operate a newly formed subsidiary, Nasdaq Stock Market LLC, as a self-regulatory organization.
Nasdaq will continue to be subject to SEC oversight, but its exchange subsidiary will have its own rules regarding trading, listing, membership and regulation, and will have its own members.
"Nasdaq's independence from the NASD also removes the possibility of a conflict of interest between the market and its regulatory arm," Bob Greifeld, president and CEO of Nasdaq, said in the news release. "In this and other ways, it strengthens our regulatory structure and allows Nasdaq to compete and serve the investor more effectively." Exchange status will also allow Nasdaq to better compete with other domestic and foreign exchanges, he said.
