| 2. | One of the Interim Rules calls for a reduction in the maximum SOES order from 1000 shares to 500 shares. In addition, the NASD reduces the number of times a market maker can be SOESed from five to two with a 15-second interval between the two executions. |
| 3. | Another Interim SOES Rule authorizes Nasdaq to offer an automated quote update feature that would move a market maker's quote away from the inside quote after a SOES execution. |
| 4. | Another Interim SOES Rule prohibits short sales on SOES. |
| December 1993 | The SEC approves the Interim SOES Rules as a 1-year pilot project. |
| January 5, 1994 | The Interim SOES Rules become effective on a trial basis. |
| May 24, 1994 | The NASD holds a meeting at Bear Stearns to discuss a draft of the Christie-Schultz study. |
| May 1994 | Domestic Securities (DOMS) begins spread cutting by quoting prices in odd eighths (in violation of the even-eighth convention) and incurs the wrath of the market makers. |
| May 26, 1994 | The Christie-Schultz study is released. |
| The Los Angeles Times reports on the Christie-Schultz study. |
| May 27, 1994 | Several class-action lawsuits are filed against certain market makers, alleging violations of federal and state antitrust and securities statutes. |
| June 1994 | A Department of Justice inquiry into the NASD begins. |
| Summer 1994 | Additional class-action suits are filed. |