The Nasdaq OMX Group, Inc. Thursday announced the creation of a new junior market, and plans to launch a third equity market in the United States.

Nasdaq said that it will establish a new listing market called BX for companies that do not presently qualify for an exchange listing. The new junior market will have basic quantitative listing standards, and the exchange will require companies to comply with many of the qualitative requirements for listing on Nasdaq and other exchanges, including having at least three independent directors, a fully independent audit committee and an independent process for oversight of executive compensation decisions.

It is expected that candidates for the BX are presently trading on one of the over-the-counter venues, either the OTCBB or the “pink sheets,” or are listed on Nasdaq or another exchange and subject to being delisted.

Pending regulatory approval, Nasdaq will use its listing license from the acquisition of The Boston Stock Exchange to launch the BX market.

“With BX we are filling a necessary need for a well-regulated listing venue for companies that otherwise would transfer to, or remain on an unregulated or lightly regulated platform,” said Bob McCooey, senior vice president of Nasdaq OMX. “This platform will provide significant benefits and protections to companies and their shareholders alike.”

Additionally, the exchange announced that it plans to launch a third equity trading platform during the second half of 2010, pending SEC approval. It will offer this equity trading platform with a new price/size priority model using the license acquired from its 2007 acquisition of the former Philadelphia Stock Exchange.

The price/size priority market structure is currently not offered on main Nasdaq market, or any other U.S. equity trading platform. The new model will give customers the ability to choose how to execute orders by either selecting a price/size priority model on the exchange’s various U.S. equity trading platforms.

“Based on feedback from key customers we decided to announce the launch of this trading platform that offers a new competitive equity market structure model,” commented Eric Noll, executive vice president, Nasdaq OMX Group.

IE