9 Firms Are Candidates to Own Part of Nasdaq

Microsoft Corp. and Intel Corp. would become major shareholders of the Nasdaq Stock Market under a proposal that will be considered next week by the board of the National Assn. of Securities Dealers Inc., Nasdaq’s parent firm. NASD is planning to spin off Nasdaq to form a privately held, for-profit corporation. NASD plans to sell shares to members, proportional to the amount of business they bring to Nasdaq. NASD also plans to offer shares to nine major companies whose stocks trade on Nasdaq. These firms could buy up to 21% of the shares of Nasdaq, which has been valued at about $1 billion. “Some of the market makers [who facilitate trades] are troubled by this. They want to know what these companies have done to deserve this,” said one securities attorney. (Washington Post)

Ticker Talk: As expected, New York Stock Exchange directors unanimously voted Thursday to eliminate a rule that bars brokerage members from trading stocks that were listed before 1979 off the floor of a traditional exchange. Scrapping Rule 390 is likely to benefit electronic trading networks known as ECNs.