Trading Data Volume Calculation

Volume Calculation in Reports Available on NASDAQTrader.com The following is an explanation on how share volume data is calculated in the various reports that contain such data that are available on NASDAQTrader.com. Data Source The share volume data is obtained from trade reports that are directly entered into NASDAQ Market Center Trade Reporting Service (ACT). Types of Trades/Trade Reports Included   Media-Reported Trades Extended Hours Trades Same Day Cancels and Corrections T+1 Corrections and T+1 As/Of Trades Trading Data Reports         Market Participant (MP) Monthly Share Volume Reports - FTP* X X X X NASDAQ Day One Data X X X   Monthly Market Activity Data X X X X Consolidated Daily Market Activity X X X             Secure Data Reports         Equity Trade Journal X Includes clearing only trades as well X X Includes only corrections and As/Of Trades Entered in on the Requested Date SelectNet Activity Reports Historical Data Only X X X             Report Source Reports         Daily Issue Data X X X   Time and Sales X X X

*These reports do not include separate share volume information for UTP Participants and differ from the Monthly Market Maker Share Volume Reports. The share volume information in all reports (except Equity Trade Journal) does not include trades reported for clearing only purposes. Volume Number There are two volume fields in the NASDAQ Market Center Trade Reporting Service (ACT): Entered Volume - Entered Volume is the actual number of shares that were transacted. Reported Volume - Reported Volume is the information that is publicly disseminated. Prior to November 3, 2003, The number of shares was rounded down to the nearest 100s (i.e., mixed lot trades were round down). Effective November 3, 2003, NASDAQ began to report mixed-lot transactions in NASDAQ National Market® and NASDAQ Capital MarketSM listed issues, to the Security Information Processor (SIP) for dissemination via the UTP Trade Data FeedSM (UTDFSM). Therefore the Entered Volume and Reported Volume will be the same. For more information please refer to NASDAQ Vendor Alert 2003-72. Market Pariticipant (MP) Monthly Share Volume Report (FTP only) Share volume is “attributed” or “credited” to the member that appears as the reporting member in the report, which is determined based on the parties involved in the transaction and whether the trade is executed using a NASDAQ® system. In most instances, the reporting party will be the member described in the chart below. However, the reporting member is determined differently for trades executed through: NASDAQ Market Center for NASDAQ Trading, and Electronic Communications Networks (ECNs), as described below. Transaction Between Who Reports Two Market Makers Market Maker on the Sell-Side Market Maker and Non-Market Maker Market Maker Two Non-Market Makers Non-Market Maker on the Sell-Side A member firm and a customer Member Example: Market Maker A sells 1,000 shares to Market Maker B. Market Maker A will appear in the NASDAQ Market Center Trade Reporting Service (ACT) report as the reporting member because it has the reporting obligation as the sell side Market Maker. NASDAQ Market Center for NASDAQ Trading Trade Reporting NASDAQ Market Center for NASDAQ Trading automatically reports trades to NASDAQ Market Center Trade Reporting Service (ACT), and identifies the member that provides the liquidity, defined as the member that “fills” the order, as the reporting member. Example: Market Maker A enters a sell order and it is executed against Market Maker B’s published bid quote in the NASDAQ montage. NASDAQ Market Center for NASDAQ Trading automatically reports the trade to NASDAQ Market Center Trade Reporting Service (ACT) from the perspective of Market Maker B because it is the party that filled the order. Therefore, under the liquidity provider model, the volume will be attributed to Market Maker B. ECN Trade Reporting ECN trade reporting varies because each ECN has different policies or uses a combination of policies as to which party has the reporting obligation. There are two general policies that ECN’s employ: ECN requires its NASD® member subscribers to report trades executed in the ECN’s system, which means the subscriber is identified as the reporting member and credited with the trade. ECN reports the trades executed in its system, identifies itself as the reporting member, and therefore, is credited with the volume. These varying policies result in different volume credited to the market maker versus the ECN in the daily volume reports and Monthly Volume Summaries reports. Multiple MPIDs per Firm Beginning with April 1, 2003 data, volume reported from ALL MPIDs assigned to a single NASDAQ broker/dealer organization will be aggregated under a single MPID in the MP monthly share volume reports (FTP only). For example, if a NASDAQ broker/dealer firm is using a second or third MPID to facilitate SuperMontage order management, the volume activity reported for these related MPIDs will be aggregated under the firm’s primary MPID. A firm that reports volume through multiple MPIDs can chose to continue to have its volume displayed under the respective MPIDs by submitting a written request signed by an authorized officer at the firm on the firm’s letterhead. This request can be faxed to NASDAQ Subscriber Services at 212.231.5426 or mailed to the following address: The Nasdaq Stock Market, Inc. Attention: Subscriber Services One Liberty Plaza New York, NY 10006 If you have questions regarding volume calculation, please contact NASDAQ Trader Product Team at traderreports@nasdaq.com