NEW YORK, March 17, 2008 (PRIME NEWSWIRE) -- The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) (NASDAQ OMX) today announced the effectiveness of a rule change approved by the Securities and Exchange Commission that permits 144A equity securities that use alternative settlement processes to be included in NASDAQ OMX's PORTAL system.
"Rule 144A equity securities that use alternative settlement processes may now be quoted, traded and to otherwise enjoy the benefits of the PORTAL market," said John Jacobs, Executive Vice President, NASDAQ OMX. "This is a necessary and important milestone towards creation of the open, industry-standard facility planned by The PORTAL Alliance that includes trading, shareholder tracking, clearance and settlement."
In November 2007, NASDAQ and 12 leading securities firms previously announced their intention to form The PORTAL Alliance, an industry standard facility designed for the private offering, trading, shareholder tracking and settlement of unregistered 144A equity securities sold to qualified institutional buyers ("QIBs"). The collaboration is subject to the execution of a definitive agreement and regulatory approvals.
Alternative settlement arrangements are mandated by issuers of 144A equity in order to monitor the number of security record holders for purposes of determining their reporting obligations under Section 12(g) of the Securities Exchange Act of 1934. PORTAL will work with third-party service providers specializing in shareholder tracking for greater efficiency, while providing the issuers of tracked securities and their investors with the enhanced trading functionality and transparency of the PORTAL system.
About The PORTAL Alliance
The PORTAL Alliance is being formed to develop an open, industry-wide platform for the private offering and trading of unregistered equity securities sold to qualified institutional buyers. The founding members of the PORTAL Alliance are Bank of America, Bear Stearns, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, The NASDAQ OMX Group, Inc., UBS and Wachovia Securities.
Cautionary Note Regarding Forward-Looking Statements
The matters described herein 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 the future benefits of the initiatives described above. 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's control. These factors include, but are not limited to factors detailed in NASDAQ'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.
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