Impact of Recent NASDAQ Changes on Listed Companies

The Securities and Exchange Commission (the "SEC") recently approved rules related to a number of changes to the structure of the NASDAQ. The changes include registration of the NASDAQ as a "national securities exchange," changing the name of the "NASDAQ National Market" to the "NASDAQ Global Market," and adding a new top tier market classification called the "NASDAQ Global Select Market." The following discussion addresses some of the practical implications of the recent NASDAQ changes.

On January 13, 2006, the SEC approved NASDAQ’s application to register The NASDAQ Stock Market as a "national securities exchange" under Section 6 of the Securities Exchange Act of 1934 (the "1934 Act"). Previously, NASDAQ was considered an automated inter-dealer quotation system of a national securities association registered pursuant to Section 15A of the 1934 Act. While the exact date of transition remains uncertain at this time due to