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Tim Quast
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We're All HFTs Now

In this guest commentary, author Tim Quast looks back at the history of HFT and how the market has evolved to where many firms now fit the definition of high-frequency trader.

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January 1, 1999

NASD Creates Dispute-Resolution Entity

By Staff Reports

In a development that reflects the outgrowth of its merger with the American Stock Exchange, the National Association of Securities Dealers formally announced the creation of two new divisions.

While the establishment of the divisions had been expected, the NASD provided the first clear map of the management lines that will guide the newly-created Nasdaq-Amex Market Group, and the separate NASD Regulation and Dispute Resolution Group.

One name of interest to traders is that of John Tognino, the outgoing president of the Security Traders Association. Tognino joins the Nasdaq-AMEX Group on January 25 as executive vice president of global sales and member affairs. He will report directly to NASD Chairman and Chief Executive Frank Zarb, who heads up the new Nasdaq-AMEX Group. (Joining Tognino at the NASD in New York is STA executive Lisa Carroll, who will report to Tognino.)

Efficiencies

The Nasdaq-AMEX Group is the NASD subsidiary charged with overseeing the operation of Nasdaq and the AMEX. Nasdaq and the AMEX, headed respectively by Alfred Berkeley and Richard Syron, will be run as separate markets with the aim of achieving technological advances and other efficiencies by melding their operations.

NASD Regulation and Dispute Resolution Group is headed by Richard Ketchum, the NASD's president and number-two executive after Zarb. The division is divided between NASD Regulation, led by Mary Shapiro, and the NASD Dispute Resolution Group, led by Linda Fienberg. The latter is a new NASD subsidiary formed to handle all dispute-resolution matters, including both arbitration and mediation.

Elise Walter stays in her old slot, remaining chief operating officer of NASD Regulation.

The NASD and AMEX merger is the culmination of NASD efforts to become a powerful global market of markets. The NASD plans to merge with the Philadelphia Stock Exchange, and has held talks about possible alliances with the Hong Kong Stock Exchange and the Frankfurt Stock Exchange in Germany.