[11283]
September 30, 1999
TO: ACCOUNTING/TREASURERS COMMITTEE No. 32-99
NAV END OF DAY PRICING FORUM
RE: EXTENDED TRADING HOURS
______________________________________________________________________________
As you may be aware, the Nasdaq Stock Market has stated publicly that it intends to extend its
trade reporting service from the current 5:15 p.m. to 6:30 p.m., effective October 11, 1999. Also, Nasdaq
has stated that it will recalculate a post 4:00 p.m. inside quotation (best bid/best ask) for those securities
that exhibit quotation activity, effective November 1, 1999. Further, the New York Stock Exchange has
indicated that it will keep its quote and trade reporting facility open until 6:35p.m., effective October 11,
1999.
The Investment Company Institute has learned that the above changes Nasdaq is planning may
limit the ability of mutual funds and service providers to obtain closing last sale and bid/ask information
for certain securities in a timely manner. The Institute sent the attached letter dated September 24 to the
Nasdaq Stock Market requesting that they ensure the continued availability of this information well
before the 5:50 p.m. deadline for submission of mutual fund prices to Nasdaq’s Mutual Fund Quotation
Service. In a follow-up conference call, NASD and Nasdaq officials agreed to consider delaying the
November 1 change to December 1.
To date, based on conversations with the New York Stock Exchange and the Securities Industry
Automation Corporation (SIAC), it does not appear that the NYSE’s initiative would present the same or
similar problems to mutual funds as Nasdaq’s. However, the Institute recommends that you contact
your market data provider(s) in order to assess the impact, if any, on your daily pricing process.
We will keep you informed of further developments. Should you have any questions, please
contact Peter Salmon at (202) 326-5869 or Greg Smith at (202) 326-5851.
Peter Salmon
Director of Operations
and Technology
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