NASDAQ Proposes a Paid-For Market Making Program

On April 6, the Securities and Exchange Commission issued a notice of filing of NASDAQ Stock Market (NASDAQ or the Exchange) proposed Rule 5950, which would establish a new Market Quality Program (MQP) for a one-year pilot period. Essentially, the MQP would permit issuers to pay market makers to enhance the market quality of certain securities listed on the Exchange. Securities covered by the MQP would be exempt from the Rule 2460 prohibition against direct or indirect payments by an issuer to a market maker.