NEW YORK, June 2, 2010 (GLOBE NEWSWIRE) -- The NASDAQ Stock Market LLC (Nasdaq:NDAQ) today announced a proposal to protect investors and listed companies while increasing transparency in the U.S. equity markets during times of volatile market conditions.
NASDAQ will implement a single stock circuit breaker – the NASDAQ Volatility GuardSM – which will pause trading based on predetermined thresholds across all NASDAQ-listed securities. The NASDAQ Volatility Guard will allow data to be universally available before, during and after the trading pause. Additionally, the reopening process will be available to all market participants for better price discovery.
The NASDAQ Volatility Guard will supplement the coordinated effort by the Securities and Exchange Commission (SEC) and U.S. exchanges for an initial pilot program ending December 10th, which establishes a trading pause for individual stocks within the Standard & Poor's 500 Index that experience a price change of 10 percent or more.
"NASDAQ's Volatility Guard will protect investors and increase transparency by preventing anomalous trades like the ones that took place on May 6th, while supporting market-makers who bring liquidity to the investor community and our listed companies," said Bob Greifeld, Chief Executive Officer NASDAQ OMX.
The NASDAQ Volatility Guard will go into effect in the third quarter of 2010.
For more information on the NASDAQ Volatility Guard including a video message from Bob Greifeld, the SEC filing and the Wall Street Journal announcement please visit: http://www.nasdaqomx.com/volatilityguard
About NASDAQ OMX Group
The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with more than 3,600 listed companies. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit http://www.nasdaqomx.com. Please follow NASDAQ OMX on Facebook (http://www.facebook.com/nasdaqomx) and Twitter (http://www.twitter.com/nasdaqomx).
Cautionary Note Regarding Forward-Looking Statements
The matters described herein may contain forward-looking statements that are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about NASDAQ OMX's products and offerings. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond NASDAQ OMX's control. These factors include, but are not limited to, factors detailed in NASDAQ OMX's annual report on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements.
Neither The NASDAQ OMX Group, Inc., nor any of its affiliates (collectively "NASDAQ OMX") makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Investors should undertake their own due diligence and carefully evaluate companies before investing.
CONTACT: The NASDAQ OMX Group, Inc. Media Contacts: Silvia Davi +1 (646) 441-5014 Silvia.Davi@NASDAQOMX.com Wayne Lee +1 (301) 978-4875 Wayne.Lee@NASDAQOMX.com Robert Madden +1 (646) 441-5045 Robert.Madden@NASDQOMX.com
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