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NASD's Battle on Primary Market-Making Rules Complex New Standards Raising Concern Among Nasdaq T

Traders Magazine, May 1998

Jeffrey L. Winograd

Citing convoluted language, the use of difficult formulae and a need for more testing, several Nasdaq trading firms have slammed the National Association of Securities Dealers' proposed new standards for primary market makers.

With the advent of the order handling rules, the original standards were shelved because old market-maker evaluations were unreliable. One standard, for instance, required market-maker spreads to be no greater than 102 percent of the average spread.

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