TO: All NASD Members

TO: ALL NASD MEMBERS

ATTN: Operations Officer, Cashier, Fail-Control Department

On December 15, 1983, the United States District Court for the Southern District of New York appointed a SIPC trustee for the above captioned firm. Previously, a temporary receiver had been appointed for the firm on December 8, 1983.

I M P O R T A N T

Officers * Partners * Proprietors

TO: Members of the National Association of Securities Dealers, Inc. and Other Interested Persons

COMMENT PERIOD CLOSES ON: January 20, 1984

I M P O R T A N T

Officers * Partners * Proprietors

TO: All NASD Members

BACKGROUND

I M P O R T A N T

MAIL VOTE

Officers * Partners * Proprietors

TO: All NASD Members

Last Voting Date Is January 30, 1984

Enclosed herewith are proposed amendments to Article III, Section 19 of the Rules of Fair Practice and the Explanation thereto. These amendments have been approved by the Association's Board of Governors for submission to the membership for a vote. If approved, they must then be filed with, and approved by, the Securities and Exchange Commission.

BACKGROUND OF THE PROPOSED AMENDMENTS

TO: All NASD Members and Level 2 and Level 3 Subscribers

NASDAQ 1983 SHARE VOLUME REACHES 15.9 BILLION MARK; 88.7% INCREASE OVER RECORD 1982 8.4 BILLION

1983 NASDAQ volume reached 15.9 billion shares, an all-time record and an 88.7% increase over 1982 volume. The 15.9 billion shares represented 74% of the NYSE's 1983 volume and 750% of that of the AMEX.

TO: All NASD Members and Level 2 and Level 3 Subscribers

An additional 12 securities will join the 728 already designated to trade in the NASDAQ National Market System on Tuesday, February 7, 1984. These securities have met the mandatory NMS designation requirements which include an average trading volume of 600,000 shares a month and a minimum bid price of $10 on the last five business days of 1983.

TO: All NASD Members and Other Interested Persons

TO: All NASD Members and Level 2 and Level 3 Subscribers

On Tuesday, February 14, the National Market System will include 789 securities as 50 more NASDAQ securities are phased into the System. (A week earlier, 12 mandatory designations will join NMS).

These 50 securities meet the SEC's voluntary designation criteria, which include six-month average trading volume of 100,000 shares a month and a minimum bid price of $5.

The 50 securities scheduled for NMS trading on February 14 are:

TO: All NASD Members

ATTN: Operations Officer, Cashier, Fail-Control Department

On January 23, 1984, the United States District Court for the Southern District of New York appointed a SIPC Trustee for the above captioned firm.

Members may use the "immediate close-out" procedures as provided in Section 59(i) of the NASD's Uniform Practice Code to close out open OTC contracts. Also, MSRB Rule G-12 (h)(iv) provides that members may use the above procedures to close out transactions in municipal securities.