Tuesday, September 30, 2008

Nasdaq Fund Network #2008 - 4
NASDAQ OMX Modifies Eligibility Criteria for MFQS Supplemental List

Please Route to:

• Subscribers of the Mutual Fund Quotation Service (MFQS)

Summary:

• NASDAQ OMX is modifying the initial eligibility criteria for the Supplemental List for the Mutual Fund Quotation Service (MFQS).
• Effective October 1, 2008, a fund must meet the following criteria in order to qualify to be added to the MFQS Supplemental List:
• The mutual fund, money market fund or unit investment trust (UIT) must be registered with the Securities and Exchange Commission (SEC) in accordance with the Investment Company Act of 1940.
• The mutual fund, money market fund, or UIT must be registered with the CUSIP bureau AND
• The investment company responsible for the fund or UIT must have at least $10 million in total assets under management and complete one full year of operation.
• NASDAQ OMX is making no changes to the eligibility criteria for inclusion in the MFQS News Media List at this time.

Overview:

NASDAQ OMX Information, LLC is modifying the initial eligibility criteria for the Supplemental List to make it easier for mutual funds, money market funds and unit investment trusts (UIT) to qualify to use the MFQS system for daily price reporting. Based on customer input, NASDAQ OMX^SM is shifting the minimum requirement for asset and years in operation from the individual fund level to the investment company level for the MFQS Supplemental List.

Please note that MFQS eligibility criteria change is limited to new Supplemental List applications submitted on or after October 1, 2008. NASDAQ OMX will allow all funds that qualified for the MFQS Supplemental List under the prior eligibility criteria to remain on the system.

Please also note that NASDAQ OMX is making no changes to the eligibility criteria for the MFQS News Media List at this time.

New Supplemental List Criteria:

Effective October 1, 2008, NASDAQ OMX will apply the following Supplemental List criteria for new fund applications:

Supplemental List Criteria – Individual Fund Level

• The mutual fund, money market fund or UIT must be registered with the SEC in accordance with the Investment Company Act of 1940
• The fund or UIT must be registered with Standard & Poor’s CUSIP Bureau
• The fund or UIT must be priced in U.S. dollars

Supplemental List Criteria - Investment Company Level

• The investment company must have at least $10 million in total assets under management
• The investment company must complete at least one full year of operation

New Application Forms:

NASDAQ OMX has modified the following MFQS applications to reflect the new Supplemental List criteria:

• MFQS Supplemental List Application – Mutual Funds and Money Market Funds
• MFQS Supplemental List Application – UITs

For the full list of MFQS applications and forms, please visit the Agreements – Mutual Fund Quotation Service (MFQS) page on the NASDAQ Trader^® website.

Contact Information:

• MFQS application processing questions should be directed to NASDAQ OMX Mutual Fund Operations at +1 203 385 6340
• All other MFQS questions should be directed to NASDAQ OMX Global Data Products at +1 301 978 5307 (option #4).