NASD Board to Rule on ‘Next Nasdaq’ Plan

The board of the National Assn. of Securities Dealers today will consider a plan dubbed the “Next Nasdaq” that would create a broad central market for customer “limit orders”--stock orders at prices specified in advance. These buy and sell orders now compete only with orders placed by other investors with the same dealer. “This would be a platform to open up the system to as many participants as possible,” said Joseph Della Rosa, head of Nasdaq’s quality of markets committee. “It would encourage competition, give investors more access and increase liquidity.” NASD is an association of brokerages that runs Nasdaq and polices all U.S. brokers. Opinion is split on the merits of the plan. The Securities Industry Assn. and the Security Traders Assn., for example, favor a streamlined trading system but oppose a central market for investor limit orders. If approved, the proposal would be forwarded to the Securities and Exchange Commission. The SEC would solicit public comment, then make a final decision.