The Nasdaq Stock Market Inc. announced that the U.S. Securities and Exchange Commission has unanimously approved its application to operate as a national securities exchange.

This action will allow Nasdaq to take the final steps needed to complete its separation from the NASD, it reports. With exchange status, Nasdaq will be licensed to operate a newly formed subsidiary, the Nasdaq Stock Market LLC, as its own self-regulatory organization.

“This is not only a step forward for Nasdaq but a very positive milestone for capital market structure. Nasdaq’s front line regulator, the NASD, will sit outside the exchange. This will allow us to complete our vision for Nasdaq as the premier market in the world served by the gold standard in regulators, the NASD,” commented Edward Knight, executive vice president and general counsel for Nasdaq .

The Nasdaq will continue to be subject to SEC oversight. Nasdaq’s independence from the NASD means Nasdaq’s exchange subsidiary will have its own rules regarding trading, listing, membership and regulation; and have its own members. Nasdaq does not plan to change its name as a result of exchange registration.

“Nasdaq’s independence from the NASD also removes the possibility of a conflict of interest between the market and its regulatory arm. In this and other ways it strengthens our regulatory structure and allows Nasdaq to compete and serve the investor more effectively. Receiving exchange status is part of a steady set of changes over the last few years that have established Nasdaq as the premier market in the world,” said Bob Greifeld, president and chief executive officer of Nasdaq . “In addition, Nasdaq will benefit from an enhanced ability to compete with other domestic and foreign exchanges that enjoy the benefits of being fully independent public company exchanges.”