TRADING AND MARKET MAKING SURVEILLANCE PROGRAMME FOR THE NASDAQ STOCK MARKET
| Pages | 144-149 |
| DOI | https://doi.org/10.1108/eb024876 |
| Date | 01 February 1996 |
| Published date | 01 February 1996 |
| Author | JOHN E.JR. PINTO |
| Subject Matter | Accounting & finance |
TRADING
AND MARKET MAKING SURVEILLANCE
PROGRAMME
FOR THE NASDAQ STOCK MARKET
Received: 26th February, 1996
JOHN
E.
PINTO,
JR.
JOHN
E. PINTO
IS
EXECUTIVE VICE PRESIDENT, REGULATION
OF
THE NATIONAL ASSOCIATION OF
SECURITIES
DEALERS REGULATION, INC
(NASDR).
HE IS RESPONSIBLE FOR ALL OF
NASDS
REGULATORY, SURVEILLANCE, AND
ENFORCEMENT
PROGRAMMES INCLUDING
ITS NATIONAL NETWORK OF 14 DISTRICT
OFFICES
LOCATED IN MAJOR CITIES
THROUGHOUT
THE COUNTRY, AND ITS
MARKET
SURVEILLANCE DEPARTMENT
WHICH
OVERSEES ACTIVITY IN THE NASDAQ
STOCK MARKET
AND
OTHER SCREEN BASED
MARKETS
THE NASD
REGULATES.
HE CAN BE
CONTACTED
AT NATIONAL ASSOCIATION OF
SECURITIES
DEALERS, INC., 1735
K
STREET,
NAY.,
WASHINGTON DC,
20006,
TELEPHONE
(202)
728
8233,
FAX (202) 728
8938.
ABSTRACT
A high level of
confidence
by all market
participants in the quality of the price,
volume and
transaction
information that
is
disseminated
to the
marketplace
is vital
to the actual and the
perceived
quality
of
that
marketplace.
Ensuring the
accuracy
and the
timeliness
of
this
trade informa-
tion requires both a strong regulatory
presence to monitor
compliance
with all
reporting requirements, as well as an
effective training and educational pro-
gramme
to
assist
those
reporting
to under-
stand
the
rides
and
regulations.
THE PROGRAMME'S ORIGIN
From 1975 to the early 1990s, the US
securities markets experienced
dramatic developments, including a
tremendous growth in trading
volume and enormous advances in
trading technology. By July 1992,
these developments, combined with
concerns raised by market partici-
pants about market fragmentation
and the adequacy of disclosure of
market information, among other
things,
demonstrated the need for a
detailed evaluation of the US markets
as this rapid evolution progressed. In
response, the US Securities and
Exchange Commission (SEC) com-
posed 'Market 2000: An Examination
of Current Equity Market Develop-
ment' (study), which was issued in
1994.
Although this study concluded
that the equity markets operated effi-
ciently within the existing regulatory
structure, the SEC nonetheless
144
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