Please Route To: Head Traders; Technical Contacts; Compliance Officers

What you need to know:

• The list of the first 20 NASDAQ-listed securities to be migrated is now available in both csv format and txt format.
• NASDAQ will hold a market-wide call on Wednesday, August 16, 2006.
• Systems integration testing is underway in test securities.
• A User Acceptance Test (UAT) is scheduled for Saturday, August 19, 2006.

Whom you should contact: NASDAQ Market Sales at 800.846.0477

Which securities will be migrated on August 28, 2006?
As announced in Head Trader Alert #2006-105, NASDAQ^® is planning to begin the systems integration of NASDAQ, Brut and INET on Monday, August 28, 2006, with 20 NASDAQ-listed securities. This list is now available in both csv format and txt format. The remaining lists will be made available as soon as possible.

What are the details of the market-wide call?
NASDAQ will hold a market-wide call on Wednesday, August 16, 2006, to provide customers with information on the NASDAQ system integration, as well as to answer questions. Details for this call are as follows:

Wednesday, August 16, 2006; 4:30 p.m., ET
Leader: Todd Golub
Call-in number: 888.316.9408
Pass code: Market-wide

What are the test securities and testing opportunities for NASDAQ systems integration?
As announced in Head Trader Alert #2006-109, NASDAQ has introduced test securities to the production systems for NASDAQ system integration testing; including continuous book quoting, order entry and executions, as well as NQDS and TotalView-ITCH data dissemination.

The test securities are ZXZZT and ZWZZT for NASDAQ-listed securities and ZZT for other exchange-listed securities.

Additional functionality is available for testing beginning on the following dates:

• Monday, August 7^th — Prop Quotes
• Wednesday, August 9^th — TotalView
• Thursday, August 10^th — Opening and Closing Crosses

How will anonymous orders be represented in the integrated system?
Anonymous orders are being represented with the MPID “NSDQ”, in preparation for the migration of securities. Once a security is migrated, anonymous orders will be represented by “NSDQ”, including all orders entered via a Brut FIX connection.

What do I need to do to participate in the UAT?
NASDAQ has scheduled a UAT on Saturday, August 19, 2006 from 9:00 a.m. to 1:00 p.m., ET, consisting of the first 20 securities being migrated. If you wish to participate in this full functionality testing of the integrated systems, please register by 12:00 p.m., ET, Thursday, August 17, 2006, one of the following ways:

1. Email your name and phone number to OpsQa@nasdaq.com, or,
2. Call the NASDAQ Testing Facility at 800.243.4284, option #4.

NASDAQ will be holding an open call on the day of the UAT, and will provide call-in details in a future alert.

Where can I get additional information?
If you have any questions, please contact:

• NASDAQ Market Sales at 800.846.0477 or
• NASDAQ Technical Support Desk at 800.243.4284.

For more information, please visit our integration web page, where you will find FAQs, links to specifications and other integration information.

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