SEC Approves Fifth-Character Identifier In Market-Maker Symbols for Non-Primary Trading Location

Executive Summary

On February 26, 1993, the Securities and Exchange Commission (SEC) approved amendments to Schedule D that require members to append a fifth-character location indicator to their market-maker identification symbol (MMID) in securities that are traded at a location away from the primary trading location. The amendments are effective immediately. The text of the amendments follows the discussion below.

Background and Description of Amendments

The SEC approved a proposal to amend Part VI of Schedule D to the NASD By-Laws to require market makers to use a special identifier for a trading desk located away from the firm's primary office. This fifth character attaches to the MMID that appears on the Nasdaq Workstation screen and alerts market participants to the fact that the trading desk of a member in a particular stock may not be located at the main trading office. Although available for many years, use of the fifth character was voluntary.

The NASD decided to require its use to avoid confusion and delay in contacting the appropriate market maker in a particular security. Using the fifth character will ensure that traders transacting an order will call the appropriate location where the market maker for the stock is located and avoid making multiple phone calls to execute the trade. The location indicators can be found in the Nasdaq/CQS Symbol Directory.

Questions regarding this Notice may be directed to the Market Surveillance Department at (301) 590-6080 or to Beth E. Weimer, Associate General Counsel at (202) 728-6998.

Text of New Rules

(Note: New language is underlined.)

Schedule D

Part VI

Requirements Applicable to Nasdaq Market Makers

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