| Fall 1994 | The SEC begins a formal inquiry into Nasdaq trading and the NASD. |
| More than two dozen class-action complaints are consolidated into one action in the U.S. District Court for the Southern District of New York, alleging an unlawful conspiracy among leading Nasdaq market makers to eliminate odd-eighth quotations in order to increase spreads in violation of the Sherman Act. Earlier allegations of violations of the securities laws are dropped. |
| December 1994 | The NASD tries to extend the Interim SOES Rules. |
| December 1994 | The SEC extends the Interim SOES Rules until March 1995. |
| November 1994 | The NASD forms the Rudman Committee to study and make recommendations on the NASD's structure and governance. The Rudman Committee is not given a charter to investigate Nasdaq. |
| January 1995 | I testify in front of the SEC for a full day; the SEC fails to approve N*PROVE; the NASD is then forced to withdraw N*PROVE. |
| August 9, 1996 | The SEC formally censures the NASD. This is the first time that the SEC had ever censured a major stock market. As the evidence in the SEC/Department of Justice investigations was uncovered, it was obvious that the high-ranking NASD officials knew about the problems and did nothing. This is one of the reasons that the SEC came to the public's rescue. |
| August 1996 | The SEC passes the Order Handling Rules, which establish market transparency and the ECNs. |
| January 1997 | Implementation of the ECNs on Nasdaq. |