UTP Operating Committee Unanimously Agrees To New Coordination Regarding Trading Halts

The Unlisted Trading Privileges Committee ("UTP Committee"), comprised of seven exchanges and markets trading NASDAQ-listed stocks, today announced unanimous agreement regarding new coordination and communication procedures for trading halts specifically in the event of extraordinary market activity that impacts more than one market. The recommendations will be submitted to each of the Plan Participants' Board of Directors and to the Securities and Exchange Commission for review and approval.

"The committee is pleased to announce a unanimous decision regarding unified coordination among markets with respect to trading halts stemming from extraordinary market activity," said Bridget Farrell, Co-Chair of the UTP Committee. "We are proposing enhanced procedures regarding the execution of trading halts following the rare occurrence of extraordinary market activity, and a process for a fair and orderly resumption of trading across all markets. We believe this is in the best interests of investors."

Key recommendations of the UTP Committee include a process specific to halts that result from extraordinary market activity in a particular Nasdaq-listed issue:

For purposes of coordinating trading halts in eligible securities, all Participants are required to utilize the "Hoot-n-Holler" system, a commonly-used communications mechanism across all US markets to provide verbal, real-time information to all Participants.
In the event of a systems failure at a UTP Plan Participant or customer of the Participant, the Participant, in coordination with Nasdaq, will determine to what degree the system problem is contained within its marketplace and, if contained, will remove its quote. This will enable markets to continue to trade when a systems problem is specific to one market place.
If the extraordinary market activity is not contained to a single market, and cannot be resolved within five minutes of the first notification through the Hoot-n-Holler system, or if Participants unanimously agree to a halt sooner, Nasdaq, as the Listing Market, may institute an Extraordinary Market Regulatory Halt. Nasdaq will simultaneously notify the Securities Industry Processor and verbally notify all Participants using the Hoot-n- Holler system.
Within 15 minutes of the declaration of a halt, all Participants will use best efforts to indicate their intentions with respect to canceling or modifying transactions and will communicate all cancels prior to resumption of trading.

In addition to the Extraordinary Market Regulatory Halt, the NASDAQ Stock Market, as the primary listings market, will continue to have the authority to call a regulatory halt (e.g. material news) in an affected security on a market-wide basis after effective communication with the Plan Participants using the newly implemented "Hoot-n-Holler" system.

The UTP Committee was formed in 1993 and is comprised of the American Stock Exchange, National Stock Exchange, Chicago Stock Exchange, The Nasdaq Stock Market/National Association of Securities Dealers, Philadelphia Stock Exchange, Boston Stock Exchange and the Archipelago Exchange/Pacific Exchange. Its purpose is to ensure cooperation across markets, in accordance with the National Market System, for the accurate distribution of consolidated market data.