Subscriptions to Monthly Statistical Reports of NASDAQ Issues

TO: NASDAQ Subscribers and NASD Members

FROM: Molly G. Bayley
Vice President, NASDAQ Operations

NASDAQ market makers and NASD Members have expressed an interest in receiving copies of the Monthly Statistical Report to Issuers (MSR) on a regular basis. This Report has been compiled and sent on a monthly basis to NASDAQ company executives for several years. Each Report contains daily, weekly and monthly price and volume data on a particular security, the market makers in the issue, as well as NASDAQ Index and volume statistics, as shown on page 3 in slightly reduced form (the actual Report measures 8-1/2" by 11").

In response to the interest expressed, we are exploring the feasibility of instituting a paid subscription service for Monthly Statistical Reports. Since developmental costs could be substantial, we need to determine how much interest there is in either of two alternative approaches to a subscription service before proceeding.

In order to receive the widest possible indication of potential interest, this Notice and the enclosed reply card have been sent to all NASD Members and NASDAQ Subscribers. Please feel free to duplicate this Notice and distribute it to other individuals or departments within your firm who might find the Monthly Statistical Report useful. It has been suggested that Corporate Finance, Research, and Compliance Departments may be particularly interested. Indications of interest may be combined or returned separately by individuals and Departments within the firm.

The first alternative involves providing subscribers with approximately 17 microfiche each month containing the Monthly Statistical Reports for all NASDAQ and NASDAQ/NMS issues. A single subscription would cost approximately $50 per year. A set of microfiche for a single month would cost approximately $10.00.

There are several distinct advantages to this approach. First, it is significantly less expensive for potential subscribers.

Second, since the microfiche would cover all NASDAQ and NASDAQ/NMS issues each month, the subscriber would accumulate a complete historical file on all NASDAQ issues. In addition, general NASDAQ and NMS statistics are shown on the Reports, so subscribers to this service would build their own historical files of overall System volume and index data.

Finally, the microfiche could be mailed within two weeks of the end of the month and could be easily stored, as each monthly set of Reports would be contained on 17 microfiche measuring 4" by 6".

The disadvantage to this approach is that it requires the subscriber to have access to a microfiche reader. Also, if hard copies of the filmed Reports are desired, a microfiche reader/printer would need to be purchased or rented. There is a wide variety of readers or reader/printers available from, among other manufacturers: Canon, Micro Design, Minolta, National Micrographics Systems, Northwest Microfilm, Realist Micrographics Systems and 3M. Purchase prices for readers range from about $220 - $350; reader/printers are available from $1,000 - $2,000.

The second alternative involves providing subscribers with hard copies of those Reports they desire. This is a flexible option, but it is considerably more expensive. Subscribers would be able to order single or multiple hard copies of any number of Reports. For example, 10 copies of ABC Corp.'s Report for April could be ordered; or Reports for all National Market System stocks could be ordered on a continuing (monthly) basis; or a selected group of Reports on either a one-time or monthly basis could be requested. The cost for this type of service would be $10 per Report.

The distinct advantage to this approach is its flexibility. Rather than receiving all NASDAQ and NMS Reports, subscribers could tailor their orders to receive only the Reports for companies in which they are interested. In addition, multiple copies of a single Report could be ordered. However, all orders for Reports would have to be received by NASDAQ prior to the monthly running of the Reports.

The distinct disadvantage to this alternative is the high per Report cost. The anticipated cost of this alternative is considerably higher than the microfiche. Depending upon the number of Reports received each month, filing space needed for storing paper copies could be considerably greater than that for the microfiche. Additionally, back issues of the Reports would not be available; subscribers would have to anticipate and pre-order Reports. Finally, it is estimated that, because of the considerable amount of manual sorting and packaging required for hard-copy Reports, it would probably take about 3 weeks following the end of the month to mail Reports to subscribers.

We would appreciate your taking a few minutes to indicate your interest and make any additional comments you may have on the enclosed postage-paid survey card, and dropping it in the mail.

Questions with respect to this survey, or requests for additional copies may be directed to Celia Kramer at (202) 728-8026 or to David Bowman at (202) 728-8028.

MONTHLY STATISTICAL REPORT

FOR MONTH ENDING 31 MAY 83

NASDAQ SYMBOL: XYZC

SECURITY DESCRIPTION: COMMON STOCK ($2.00 PAR VALUE)

TOTAL SHARES OUTSTANDING: 1,000,000

PLEASE NOTIFY NASD OF ANY CHANGE IN COMPANY CONTACT OR ADDRESS

Mr. John W. Doe
President

XYZ Corporation
1234 Main Street
Waterbridge, VA 22300