In September 1961, U. S. Congress authorized the Securities and Exchange Commission (SEC) to conduct a study of fragmentation in the over-the-counter market (OTC).

Congress appropriated $750,000 to hire staff to make special studies of the over-the-counter market, small securities issues, and investment advisory services.

The SEC proposes automation as a possible solution and charges the National Association of Securities Dealers (NASD) with its implementation.