Report of the Corporate Debt Market Panel

September 30, 2004

In March 2004, NASD convened a panel of industry experts and investor advocates to assess the challenges facing the corporate debt market and make recommendations for possible improvements. The objective of the Corporate Debt Market Panel was to review and make recommendations to the NASD Board of Governors regarding how to best ensure market integrity and investor protection in the corporate bond market.

The Panel, comprised of twelve members knowledgeable about the interests of individual investors, institutional investors, broker-dealers and others released their final report in September 2004. The

Corporate Debt Panel Report

represents the Panel's findings and recommendations, which along with the increasing availability of TRACE transaction information, will bring new levels of transparency and information to investors in the corporate bond market.

NASD continues to work with the securities industry and the SEC to bring even more transparency to this market and protect its investors.