UNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK

______________________________)
UNITED STATES OF AMERICA,          ))
                     PLAINTIFF,    )
                )
          v.                       )     Civil Action No.
ALEX. BROWN & SONS INC.;           )
BEAR, STEARNS & CO. INC.; CS )
FIRST BOSTON CORP.; DEAN           )
WITTER REYNOLDS INC.;              )
DONALDSON, LUFKIN & JENRETTE )
SECURITIES CORP.; FURMAN SELZ )
LLC; GOLDMAN, SACHS & CO.;         )
HAMBRECHT & QUIST LLC; HERZOG,)
HEINE, GEDULD, INC.; J.P.          )
MORGAN SECURITIES, INC.;           )
LEHMAN BROTHERS, INC.; MAYER )
& SCHWEITZER, INC.; MERRILL        )
LYNCH, PIERCE, FENNER & SMITH,)
INC.; MORGAN STANLEY & CO.,        )
INC.; NASH, WEISS & CO.; OLDE )
DISCOUNT CORP.; PAINEWEBBER        )
INC.; PIPER JAFFRAY INC.;          )
PRUDENTIAL SECURITIES INC.;        )
SALOMON BROTHERS INC.;             )
SHERWOOD SECURITIES CORP.;         )
SMITH BARNEY INC.; SPEAR           )
LEEDS & KELLOGG, LP; and           )
UBS SECURITIES LLC                 ))
                DEFENDANTS.        )
______________________________)




                           STIPULATION AND ORDER

     WHEREAS, plaintiff, United States of America, having filed

its complaint on July 17, 1996, and plaintiff and defendants, by

their respective attorneys, having agreed to the entry of this

stipulation and order without trial or adjudication of any issue

                         UNITED STATES DISTRICT COURT FOR
                         THE SOUTHERN DISTRICT OF NEW YORK

_____________________________)
UNITED STATES OF AMERICA,        ))
          PLAINTIFF,             )) Civil Action No. 96 CIV 5313 (RWS)
               v.                ))
ALEX. BROWN & SONS, INC.         )
     et al.                      ))
          DEFENDANTS.            )
_____________________________)

          MEMORANDUM IN OPPOSITION TO MOTION OF PLAINTIFFS IN THE
                IN RE NASDAQ MARKET-MAKERS ANTITRUST LITIGATION
                     TO INTERVENE OR TO APPEAR AS AMICUS CURIAE

     The United States opposes the motion of the plaintiffs in a private

civil damages case, In re Nasdaq Market-Makers Antitrust Litigation, who

have sued certain market makers in Nasdaq stocks under the antitrust laws

(hereinafter "private plaintiffs") to intervene in this antitrust action by

the United States for injunctive relief against several of the same

defendants; in addition, the United States opposes the private plaintiffs'

alternate suggestion, that they be allowed to participate as amicus curiae

in this proceeding to determine whether entry of the proposed consent

settlement is "in the public interest." 15 U.S.C. 16(e).

     In making this "public interest" determination, "the court's function

is not to determine whether the resulting array of rights and liabilities

is the one that will best serve society, but only to confirm that the

resulting settlement is within the reaches of the public interest." United

States v. Microsoft Corp., 56 F.3d 1448, 1460-61 (D.C. Cir. 1995) (emphasis

in original) (internal quotations omitted); accord, United States v.



Bechtel Corp., 648 F.2d 660, 666 (9th Cir.), cert. denied, 454 U.S. 1083

Hays Gorey, Jr. (HG 1946)
United States Department of Justice
Antitrust Division
600 E Street, N.W., Room 9500
Washington D.C. 20530
(202) 307-6200
Attorney for Plaintiff United States of America

UNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK
______________________________)
UNITED STATES OF AMERICA,         ))
                   PLAINTIFF,     )
          )v.                      )    Civil Action No.
ALEX. BROWN & SONS INC.;          )
BEAR, STEARNS & CO. INC.; CS )
FIRST BOSTON CORP.; DEAN          )     COMPLAINT FOR EQUITABLE
WITTER REYNOLDS INC.;             )     RELIEF FOR VIOLATION OF
DONALDSON, LUFKIN & JENRETTE )          15 U.S.C. § 1
SECURITIES CORP.; FURMAN SELZ )
LLC; GOLDMAN, SACHS & CO.;        )
HAMBRECHT & QUIST LLC; HERZOG,)
HEINE, GEDULD, INC.; J.P.         )
MORGAN SECURITIES, INC.;          )
LEHMAN BROTHERS, INC.; MAYER )
& SCHWEITZER, INC.; MERRILL       )
LYNCH, PIERCE, FENNER & SMITH,)
INC.; MORGAN STANLEY & CO.,       )
INC.; NASH, WEISS & CO.; OLDE )
DISCOUNT CORP.; PAINEWEBBER       )
INC.; PIPER JAFFRAY INC.;         )
PRUDENTIAL SECURITIES INC.;       )
SALOMON BROTHERS INC.;            )
SHERWOOD SECURITIES CORP.;        )
SMITH BARNEY INC.; SPEAR,         )
LEEDS & KELLOGG, LP; and          )
UBS SECURITIES LLC,               ))
                  DEFENDANTS.     ))
                                 COMPLAINT

    The United States of America, acting under the direction of

the Attorney General, brings this civil action pursuant to

Section 4 of the Sherman Act, as amended, 15 U.S.C. § 4, to



obtain equitable and other relief to prevent and restrain

Hays Gorey, Jr. (HG 1946)
United States Department of Justice
Antitrust Division
600 E Street, N.W., Room 9500
Washington D.C. 20530
(202) 307-6200
Attorney for Plaintiff United States of America

UNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK
______________________________)
UNITED STATES OF AMERICA,        ))
                   PLAINTIFF,    )
          )v.                    )     Civil Action No.
ALEX. BROWN & SONS INC.;         )
BEAR, STEARNS & CO. INC.; CS )
FIRST BOSTON CORP.; DEAN         )
WITTER REYNOLDS INC.;            )
DONALDSON, LUFKIN & JENRETTE )
SECURITIES CORP.; FURMAN SELZ )
LLC; GOLDMAN, SACHS & CO.;       )
HAMBRECHT & QUIST LLC; HERZOG,)
HEINE, GEDULD, INC.; J.P.        )
MORGAN SECURITIES, INC.;         )
LEHMAN BROTHERS, INC.; MAYER )
& SCHWEITZER INC.; MERRILL       )
LYNCH, PIERCE, FENNER & SMITH,)
INC.; MORGAN STANLEY & CO.,      )
INC.; NASH, WEISS & CO.; OLDE )
DISCOUNT CORP.; PAINEWEBBER      )
INC.; PIPER JAFFRAY INC.;        )
PRUDENTIAL SECURITIES INC.;      )
SALOMON BROTHERS INC.;           )
SHERWOOD SECURITIES CORP.;       )
SMITH BARNEY INC.; SPEAR,        )
LEEDS & KELLOGG, LP; and         )
UBS SECURITIES, LLC.             ))
                  DEFENDANTS.    )
______________________________)


                      COMPETITIVE IMPACT STATEMENT

     Pursuant to Section 2(b) of the Antitrust Procedures and

Penalties Act ("APPA" or "Tunney Act"), 15 U.S.C. § 16(b)-(h),