The Nasdaq Stock Market, Inc. announced that the U.S. Securities and Exchange Commission has approved its new centralized trading and negotiation system for private placements, known as 144A securities.

The exchange says that the fully automated Web-based platform, an outgrowth of Nasdaq’s 17-year old Portal system, is the first centralized electronic system for displaying and accessing trading interest in 144A issues. The new system will be available to all qualified users on August 15. It is intended to improve the efficiency and transparency of the private placement market, encouraging capital formation, it says.

Nasdaq adds that it will launch the centralized trading and negotiation system for 144A equity securities first and anticipates it will phase in debt securities in the fourth quarter.

It estimates that the amount of equity and debt capital raised using Rule 144A has grown three-fold since 2002 and exceeded $1 trillion in 2006 for the first time. In the first half of 2007, global equity and debt capital raised in conjunction with a 144A tranche was almost US$1 trillion, a 43% increase over the first half of 2006.

“Nasdaq has operated The PortalMarket since 1990, so we are uniquely qualified to play a significant role in the 144A market of the future,” stated Nasdaq executive vice president John Jacobs, in a release. “We believe this centralized automated platform will bring added liquidity and transparency to the 144A market and is a natural progression for Nasdaq given our expertise in electronic trading systems.”

According to David Hermer, Head of Americas Syndicate at Credit Suisse, “The introduction of the enhanced multi-broker Portaltrading platform will revolutionize the 144A equity market, offering both corporations and investors a transparent, liquid marketplace that heretofore has not existed. With private placement capital in hand, companies will have the time and flexibility to grow their businesses, evaluate options, gain experience and develop more accurate pricing, all of which can lead to a more effective IPO.”