On January 22, 2009, the Nasdaq Stock Market LLC published proposed amendments to Nasdaq Rule 4611(d) to modify the requirements for members who provide “sponsored access” to Nasdaq’s execution system. Sponsored access occurs when an exchange member provides its clients, often hedge funds, with direct electronic access to the exchange using the member's identifier. Under this arrangement, the customer receives a dedicated line or port to the exchange's execution system, so that its orders do not first pass through the member's systems before reaching the exchange. Nasdaq’s proposed amendments aim to ensure that the exchange, as well as members assuming responsibility for their customers’ trading activity, retains effective oversight. Key industry groups, however, have voiced objections. Those industry groups include The Managed Funds Association and The Securities Industry & Financial Markets Association. We detail the proposed rule and the industry response.