SECURITIES

NASD Unit to Add 130 Regulators: The National Assn. of Securities Dealers’ regulatory arm will boost its budget by more than $10 million as part of a reorganization announced its president, Mary Schapiro. The expansion and restructuring “is designed to maximize our effectiveness as a regulator,” Schapiro said. NASD Regulation, as the unit is known, also plans to develop an electronic audit system for tracking stock trades and to find new ways to monitor “anonymous sales campaigns, hype and fraud” on the Internet. NASD spent about $100 million on regulation last year, increased its budget to $115 million this year after a study by former Sen. Warren Rudman (R-N.H.) and will grow to $125 million with the additional funds sought by Schapiro. NASD Regulation was established last year after Rudman urged separating Nasdaq Stock Market from NASD’s duties as the government-designated regulator of securities brokers and markets.