NASD Rule Filing Status (March)
Rule Filing Status As Of March 4, 1999
NASD Rule Filing Status
The following is a list of rule filings by the National Association of Securities Dealers, Inc. (NASD® or Association) that are pending at the Securities and Exchange Commission (SEC); recently have been approved and have not been announced in a Notice to Members; or recently have been withdrawn. The information is current as of March 4, 1999. Copies of rule filings (and any amendments thereto), the SEC release publishing the rule proposal for comment, and the SEC release approving the rule change are available from the SEC Public Reference Room at (202) 942-8090, or from Christopher Leigh, NASD Office of General Counsel, at (202) 728-8236 or via e-mail at [email protected] (in certain cases a fee may be required). NASD rule changes are not effective until approved by the SEC.
Rule Filings That Have Not Been Published For Comment By The SEC
99-12
Amend Rule 7010 to establish a fee for a voluntary trading data distribution facility, named Nasdaq Post DataSM, accessible to NASD members, buy-side institutions (Qualified Institutional Buyers [QIBs]1) and market data vendors through its "NasdaqTrader.com" Web Site.
99-11
Amend Rules 4611, 4613, 4618, 4619, 4620, 4632, and Series 4700 to re-establish SelectNetSM as an order delivery and negotiation system for Nasdaq National Market® (NNM) securities and make numerous changes to the current rules relating to the trading of NNM securities.
99-09
Amend Rule 4613 to permit the separate display of customer orders by Market Makers in Nasdaq® through a Market Maker agency identification symbol.
99-08
Amend Rules 10201 and 10202, and adopt new Rule 3080 and new Rule Series 10210 to enhance the dispute resolution process for the handling of employment discrimination disputes, and to expand disclosure to employees concerning the arbitration of all disputes.
99-07
Submission of proposed Discovery Guide for use in arbitration proceedings to improve the discovery process in NASDsponsored securities arbitrations. The Discovery Guide consists of introductory and instructional text, and 14 Document Production Lists.
99-05
Amend Rule 2520 relating to margin for exempted borrowers, good faith accounts, joint back office arrangements and options transactions.
99-02
Amend IM-2110-1 and Rule 2720 to clarify the definition of "public offering" to include all offerings of securities exempt from SEC registration under SEC Rule 504.
99-01
Amend Schedule A to the NASD By-Laws and Rule 2710 to simplify the fee structure for public offerings filed under Rules 2710, 2720, and 2810.
98-96
Amend Form U-4, the Uniform Application for Securities Industry Registration or Transfer, and Form U-5, the Uniform Termination Notice for Securities Industry Termination. Comments solicited in Notice to Members (NtM) 98-101.
98-74
Amend Rule 3110 to require additional disclosure in pre-dispute arbitration agreements regarding the arbitration process, including possible limits on eligibility of claims and availability of punitive damages; to require member firms to provide certain information regarding arbitration and pre-dispute arbitration agreements to customers upon request; and to clarify the rule regarding use of choice-of-law provisions in pre-dispute arbitration agreements.
98-55
Amend Section 8 of Schedule A of the NASD By-Laws with respect to the collection of SEC transaction fees (SEC Fees).
98-40
Amend Rule 3350 governing short sales in NNM securities to allow Market Makers and broker/dealers to engage in certain customer facilitating, liquidity-providing transactions (Facilitation Exemption).
98-11
Adopt IM-2210-5, Presentation of Mutual Fund and Variable Contract-Related Performance Information, and amend Rule 2210 and IM-2210-2 to permit the presentation of related performance information (other than manager performance information) in mutual fund and variable product sales material, subject to certain conditions designed to make the presentation fair, balanced, and not misleading.
Rule Filings That Have Been Published For Comment But Have Not Been Approved By The SEC
99-04
Adopt new Rule 2315, which requires members to review current issuer information prior to recommending a transaction to a customer in an over-the-counter (OTC) equity security. Additionally, the proposed rule change would amend NASD Rule 6740 to permit members to submit a certification to the Association that states that the member has conducted a review of specified information and has fulfilled its SEC Rule 15c2-11 obligations for documents that currently reside on the SEC's EDGAR database. Published for comment by the SEC in Release No. 34-41075 (February 19, 1999); 64 F.R. 10037 (March 1, 1999). Comment period expires March 22, 1999.
98-94
Amend Rule 11890 to conform the time frame for requesting a clearly erroneous adjudication for preopening transactions. Published for comment by the SEC in Release No. 34-40992 (January 28, 1999); 64 F.R. 5846 (February 5, 1999). Comment period expired February 26, 1999.
98-88
Code of Procedures for review of Nasdaq Listing Determinations. Amendment to NASD Rule 4800 Series. Published for comment by the SEC in Release No. 34-40874 (December 31, 1998); 64 F.R. 1258 (January 8, 1999). Comment period expired January 29, 1999.
98-85
Adopt new Rules 4990 through 4998 to establish the Nasdaq Application, a new electronic trading system based on the innovative information processing technology provided by Opti-Mark Technologies, Inc. Published for comment by the SEC in Release No. 34-40835 (December 28, 1998); 64 F.R. 549 (January 5, 1998). Comment period expired January 26, 1999.
98-80
Adopt Rule 9800 Series to establish procedures to enable NASD Regulation to issue temporary cease and desist orders. The proposed rule change also would grant NASD Regulation authority to take expedited disciplinary actions when temporary or permanent cease and desist orders are violated. Amendment No. 1 filed with the SEC on December 5, 1998. Published for comment by the SEC in Release No. 34-40826 (December 22, 1998); 63 F.R. 71984 (December 30, 1998). Comment period expired March 1, 1999.
98-61
Amend Rule 6420 to eliminate an unnecessary provision relating to the reporting of transactions in exchange-listed securities traded in the third market. Published for comment by the SEC in Release No. 34-40360 (August 21, 1998); 63 F.R. 46267 (August 31, 1998). Comment period expired September 25, 1998.
98-59
Amend the trade reporting rules, Rules 4632, 4642, 4652, 6620, with respect to "risk-less" principal transactions by Market Makers. Published for comment by the SEC in Release No. 34-40382 (August 28, 1998); 63 F.R. 47337 (September 4, 1998). Comment period expired September 25, 1998.
98-49
Amend Rule 10335 to make it a permanent part of the Code of Arbitration. Amendment No. 1 filed with the SEC on September 9, 1998. Amendment No. 2 filed with the SEC on September 10, 1998. Amendment No. 3 filed with the SEC on December 3, 1998. Published for comment by the SEC in Release No. 34-40441 (September 15, 1998); 63 F.R. 50611 (September 22, 1998). Comment period expired October 13, 1998.
98-44
Amend Rule 1060 and create new Interpretative Material, IM-3010, to codify existing practice by exempting from registration persons whose securities business is limited to certain limited marketing activities and specify supervisory requirements for members concerning such unregistered persons. Published for comment by the SEC in Release No. 34-40784 (December 15, 1998); 63 F.R. 70173 (December 18, 1998). Comment period expired January 8, 1999.
98-32
Amend Rule 2210 to exclude independently-prepared research reports from the filing requirements of Rule 2210. Amendment No. 1 filed with the SEC on May 13, 1998. Published for comment by the SEC in Release No. 34-40074 (June 4, 1998); 63 F.R. 32690 (June 15, 1998). Comment period expired July 6, 1998.
98-20
Amend Rule 11860 to permit members to use the facilities of a Qualified Electronic Vendor for electronic confirmation and affirmation of depository eligible transactions. Published for comment by the SEC in Release No. 34-39831 (April 6, 1998); 63 F.R. 18057 (April 13, 1998). Comment period expired May 4, 1998. Comment period extended by the SEC in Release No. 34-39944 (May 1, 1998); 63 F.R. 25531 (May 8, 1998). Comment period expired June 3, 1998.
98-18
Adopt a new membership Rule 1150 that would provide NASD members with qualified immunity in arbitration proceedings for statements made in good faith in certain disclosures filed with the NASD on Forms U-4 and U-5. Published for comment by the SEC in Release No. 34-39892 (April 21, 1998); 63 F.R. 23321 (April 28, 1998). Comment period extended in SEC Release No. 34-40005 (May 19, 1998); 63 F.R. 29050 (May 27, 1998). Comment period expired June 19, 1998.
98-17
Amend Rules 4611, 4613, 4618, 4619, 4620, 4632, 4642, and adopt new Rule 4900 Series to establish an integrated order delivery and execution system. The new system would replace the existing Small Order Execution SystemSM (SOESSM) and SelectNet service, while retaining certain features of each in a combined infrastructure. It also will feature a voluntary limit order book. In addition, a component of the new system will permit institutions to obtain direct electronic access to The Nasdaq Stock Market® through a sponsored arrangement with a Nasdaq Market Maker. Amendment No. 1 filed with the SEC on March 3, 1998. Published for comment by the SEC in Release No. 34-39718 (March 4, 1998); 63 F.R. 12124 (March 12, 1998). Comment period expired April 2, 1998. Comment extended in SEC Release No. 34-39794 (March 25, 1998); 63 F.R. 15471 (March 31, 1998). Comment period extended to May 8, 1998.
98-14
Amend Rules 2820 and 2830 to: 1) provide maximum aggregate sales charge limits for fund of funds arrangements; 2) permit mutual funds to charge installment loads; 3) prohibit loads on reinvested dividends; 4) impose redemption order requirements for shares subject to contingent deferred sales loads; and 5) eliminate duplicative prospectus disclosure. Amendment No. 1 filed with the SEC on March 12, 1998. Amendment No. 2 fil e d with the SEC on June 10, 1998. Published for comment by the SEC in Release No. 34-40310 (August 7, 1998); 63 F.R. 43974 (August 17, 1998). Comment period expired September 8, 1998.
98-08
Amend trade reporting Rules 4623, 4632, 4652, 6420, and 6620. The proposals would: 1) implement a new trade report modifier to identify trades effected at a prior reference price; 2) eliminate the 10,000-share limitation on individual trades that may be "bunched" for trade reporting purposes; 3) require electronic communications networks (ECNs) to be responsible for reporting all trades executed within the ECN; and 4) address risk-less principal trades involving exchange-listed securities traded in the Third Market. Published for comment by the SEC in Release No. 34-40047 (June 2, 1998); 63 F.R. 30791 (June 5, 1998). Comment period expired June 26, 1998.
97-89
Adopt a new interpretation to Rule 2210 to permit the use by members and associated persons of bond mutual fund volatility ratings in supplemental sales literature on an interim 18-month pilot basis. Published for comment by the SEC in Release No. 34-40627 (November 2, 1998); 63 F.R. 60431 (November 9, 1998). The comment period expired November 30, 1998.
97-76
Amend Rule 3230 to: 1) establish standards for the disposition of written customer complaints about introducing member firms that are received by clearing firms; 2) govern how exception reports are made available to introducing firms and retained by clearing firms; and 3) permit introducing firms to write checks on their clearing firm's account. Amendment No. 1 filed with the SEC on November 19, 1997. Amendment No. 1 filed with the SEC on November 19, 1997. Published for comment by the SEC in Release. No. 34-39349 (November 21, 1997); 62 F.R. 63589 (December 1, 1997). Comment period expired December 22, 1997.
97-61
Adopt new IM-2240-2: Application of the NASD Mark-Up Policy to Transactions in Government and Other Debt Securities. Published for comment by the SEC in Release No. 34-40511 (September 30, 1998); 63 F.R. 54169 (October 8, 1998). Comment period expired December 7, 1998.
97-58
Amend Rule 3350 to implement Short Sale Rule on a permanent basis. Published for comment by the SEC in Release No. 34-38979 (August 26, 1997); 62 F.R. 46537 (September 3, 1997). Comment period expired September 24, 1997.
97-47
Adopt new rule, 10336, to the Code of Arbitration Procedure to cap punitive damages at the lesser of twice compensatory damages or $750,000. Amendment No. 1 fil e d with the SEC on October 17, 1997. Amendment No. 2 filed with the SEC on November 14, 1997. Published for comment by the SEC in Release No. 34-39371 (November 26, 1997); 62 F.R. 64428 (December 5, 1997). Comment period expired December 29, 1997.
97-44
Amend Rule 10304 of the Code of Arbitration Procedure (Eligibility Rule) to retain current six-year eligibility rule, provide that all claims shall be eligible for arbitration unless challenged, eliminate involuntary bifurcation of claims, and eliminate election of remedies. Amendment No. 1 filed with the SEC on July 14, 1997. Amendment No. 2 filed with the SEC on July 18, 1997. Amendment No. 3 filed with the SEC on December 3, 1997. Amendment No. 4 filed with the SEC on December 18, 1997. Published for comment by the SEC in Release No. 34-39487 (December 23, 1997); 63 F.R. 588 (January 6, 1998). Comment period expired January 27, 1998.
97-12
Amend Rule 2340 relating to the disclosure of values for direct participation program and real estate investment trust securities on customer account statements. Published for comment by the SEC in Release No. 34-38451 (March 27, 1997); 62 F.R. 15945 (April 3, 1997). Comment period expired April 24, 1997. Amendment No. 1 filed with the SEC on June 26, 1997. Submission dated June 26, 1997, responds to comments. Amendment No. 2 filed with the SEC on July 7, 1997.
96-47
Amend Rule 10304, Code of Arbitration Procedure, to establish interim policy of referring eligibility determinations to the arbitrators and to eliminate eligibility determinations by the staff pending adoption of final eligibility rule. Published for comment by the SEC in Release No. 34-38060 (December 18, 1996); 61 F.R. 68081 (December 26, 1996). Comment period expired January 16, 1997.
96-43
Amend Rules 4613, 4623, 4710, 4730, 6330, and IM-4613 to modify SOES and SelectNet to implement the SEC's Order Handling Rules. Published for comment by the SEC in Release No. 34-38008 (December 2, 1996); 61 F.R. 64549 (December 5, 1996). Comment period expired December 26, 1996. Amendment No. 1 filed with SEC on January 9, 1997. Partial approval granted by the SEC in Release No. 34-38156 (January 10, 1997); 62 F.R. 2415 (January 16, 1997).
Rule Filings Approved By The SEC
99-10
Amend the NASDR and Nasdaq By-Laws to increase from 8 to 10 the maximum number of directors on the boards of those corporations. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-41026 (February 8, 1999); 64 F.R. 7223 (February 12, 1999). Comment period expired March 5, 1999.
99-06
Explanation of Nasdaq's decision to cease the practice of using a fif t h character identifier with a symbol of foreign securities. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-41076 (February 19, 1999); 64 F.R. 9552 (February 26, 1999). Comment period expires March 19, 1999.
98-99
Amend Rule 7010 to establish a fee for a compliance and trading data report distribution facility accessible to members through the NasdaqTrader.com Web Site. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-40983 (January 27, 1999); 64 F.R. 5329 (February 3, 1999). Comment period expired February 24, 1999.
98-98
Amend Nasdaq's practices concerning Market Maker quotations in Nasdaq securities that are being quoted for the first time after an initial public offering (IPO). Under the proposal, the pre-opening period for the initial display of Market Maker quotes will be extended to 15 minutes prior to the commencement of trading to permit the development of orderly quotations, with provision for a single additional 15-minute extension of the pre-opening period if the market is locked or crossed at the conclusion of the first 15-minute period. Accelerated approval granted by the SEC in Release No. 34-40968 (January 22, 1999); 64 F.R. 4729 (January 29, 1999). Comment period expired February 19, 1999.
98-97
Amend Rule 10335 of the Code of Arbitration Procedure to extend the effectiveness of the rule for six months. Pilot rule now due to expire July 3, 1999. Accelerated approval granted by the SEC in Release No. 34-40846 (December 28, 1998); 64 F.R. 548 (January 5, 1999). Comment period expired January 26, 1999.
98-95
Amend Schedule A of the NASD By-Laws to reduce fees for the Regulatory Element of the Continuing Education requirements of Rule 1120 and to correct a cross-reference. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-40851 (December 28, 1998); 64 F.R. 554 (January 5, 1999). Comment period expired January 26, 1999.
98-93
Amend Rule 10333(d) to change the time when members must pay the pre-hearing process fee in an arbitration. The fee now becomes payable when the parties are notified of the pre-hearing conference. Previously the fee was due and payable when the pre-hearing conference was held. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-40933 (January 11, 1999); 64 F.R. 3142 (January 20, 1999). Comment period expired February 10, 1999.
98-92
Amend Rule 2860(b)(3)(A) to triple the position limits on standardized (exchange-traded) equity options and make them equivalent to the limits on conventional OTC equity options overlying the same security. Accelerated approval granted by the SEC in Release No. 34-40932 (January 11, 1999); 64 F.R. 2930 (January 19, 1999). Comment period expired February 9, 1999.
98-91
Amend Rule 10321 to modify the earliest date to file document and information requests in arbitration proceedings from 20 business days to 45 calendar days after service of the Statement of Claim or upon filing of the Answer, whichever is earlier. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-40954 (January 19, 1999); 64 F.R. 3993 (January 26, 1999). Comment period expired February 16, 1999.
98-87
Amend Schedule A to the NASD By-Laws and Rule 2710 to delete the provision mandating that Corporate Financing filing fees be paid in the form of a check or money order. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-40706 (November 24, 1998); 63 F.R. 66618 (December 2, 1998). Comment period expired December 23, 1998.
98-86
Amend Rules 112, 120, 1060, 1100, 3010, 6120, and 10101 and Interpretive Material 2110-4, 2210-4, 2420-1, 2420-2, and 2440, to correct cross-references to the NASD By-Laws. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-40718 (November 30, 1998); 63 F.R. 67499 (December 7, 1998). Comment period expired December 28, 1998.
98-84
Amend Rule 7010(l) to extend, through March 31, 1999, the fees currently charged for the execution of transactions in SelectNet. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-40783 (December 15, 1998); 63 F.R. 70177 (December 18, 1998). Comment period expired January 8, 1999.
98-79 Amend Rule IM-4120-1 regarding Nasdaq issuers' disclosure responsibilities when using the Internet to disseminate material news about the company. Published for comment by the SEC in Release No. 34-40771 (December 10, 1998); 63 F.R. 69701 (December 17, 1998). Comment period expired January 7, 1999. Approved by the SEC in Release No. 34-40988 (January 28, 1999); 64 F.R. 5331 (February 3, 1999).
98-78 Amend Rule 2860(b)(3)(A)(vii) to make permanent the Association's Equity Option Hedge Exemption, which has been operating as a pilot program since 1990. Published for comment by the SEC in Release No. 34-40652 (November 9, 1998); 63 F.R. 63764 (November 16, 1998). Comment period expired December 7, 1998. Approved by the SEC in Release No. 34-40814 (December 21, 1998); 63 F.R. 71534 (December 29, 1998).
98-73
Amend Rule 7010 to make permanent the $21.25 monthly per port fee for subscribers who receive Nasdaq Level 1 service through automated voice response services. Published for comment by the SEC in Release No. 34-40547 (October 15, 1998); 63 F.R. 56055 (October 20, 1998). Comment period expired November 10, 1998. Approved by the SEC in Release No. 34-40689 (November 19, 1998); 63 F.R. 65626 (November 27, 1998).
98-72
To extend for one year: 1) the pilot term of the Nasdaq International Service; and 2) the effectiveness of certain rules (International Rules) that are unique to the Service. With this filing, the pilot period for the Service and the International Rules would be extended through October 8, 1999. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-40528 (October 6, 1998); 63 F.R. 55165 (October 14, 1998). Comment period expired November 4, 1998.
98-70 Amend Rule 7090 to add a logon identification fee for subscribers to Nasdaq's Mutual Fund Quotation System (MFQS or Service) that use the MFQS to transmit to Nasdaq fund-pricing and other required information. Amendment No. 1 filed with the SEC on October 1, 1998. Published for comment by the SEC in Release No. 34-40543 (October 15, 1998); 63 F.R. 55909 (October 19, 1998). Comment period expired November 9, 1998. Approved by the SEC in Release No. 34-40694 (November 19, 1998); 63 F.R. 65832 (November 30, 1998).
98-68 Revise the interpretation of the d e finition of "ACT Eligible Security" in Rule 6110(a) to include all securities designated as PORTALSM securities pursuant to Rule Series 5320(The PORTAL Market Rules) to the extent transactions in such PORTAL securities are voluntarily submitted to Automated Confirmation Transaction ServiceSM (ACTSM) solely for reconciliation, comparison, and/or clearance and settlement. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-40424 (September 8, 1998); 63 F.R. 49623 (September 16, 1998). Comment period expired October 16, 1998.
98-67
Statement of two policies regarding the NASD's oversight of American Stock Exchange LLC (Amex LLC) and the composition of the Board of Governors of Amex LLC. Published for comment by the SEC in Release No. 34-40443 (September 16, 1998); 63 F.R. 51108 (September 24, 1998). Comment period expired October 15, 1998. Approved by the SEC in Release No. 34-40462 (October 30, 1998); 63 F.R. 59819 (November 4, 1998).
98-65
Amend Rule 7010(l) to extend, through November 30, 1998, the fees charged for the execution of transactions in SelectNet. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-40427 (September 10, 1998); 63 F.R. 49724 (September 17, 1998). Comment period expired October 8, 1998.
98-63
Amend the current fee schedule in Rule 7010(h)(2) for subscribers to the Nasdaq Workstation II® (NWII) service who are not NASD members. Amendment No. 1 filed with the SEC September 12, 1998. Amendment No. 2 filed with the SEC November 17, 1998. Published for comment by the SEC in Release No. 34-40521 (October 6, 1998); 63 F.R. 55167 (October 14, 1998). Comment period expired November 14, 1998. Approved by the SEC in Release No. 34-40716 (November 27, 1998); 63 F.R. 66619 (December 2, 1998).
98-62
Amend Rule 7010(h)(2) relating to NWII and network fees. The proposed rule change is intended to amend the current fee schedule for NWII service for NASD members only. The NASD and Nasdaq are filing a parallel rule filing to effect the same amendments to the NWII fee structure to apply to non-NASD members (See RF 98-63). The NASD and Nasdaq also are eliminating the Digital Interface Service fees as this service is no longer provided by the Association. Effective upon filing. Amendment No. 1 filed with the SEC on September 10, 1998. Published for comment by the SEC in Release No. 34-40434 (September 11, 1998); 63 F.R. 49937 (September 11, 1998). Comment period expired October 9, 1998.
98-53
Amend Rule 6800 to establish minimum requirements for the inclusion of closed-end mutual funds in Nasdaq's MFQS. Amendment No. 1 filed with the SEC on August 26, 1998. Published for comment by the SEC in Release No. 34-40380 (August 27, 1998); 63 F.R. 47336 (September 4, 1998). Comment period expired September 25, 1998. Approved by the SEC in Release No. 34-40519 (October 5, 1998); 63 F.R. 54740 (October 13, 1998).
98-47
Amend Rules 4632, 4642, 4652, 5109, 6120, 6140, 6420, 6620, 7010, 11180 to integrate the functionality of the Trade Acceptance and Reconciliation ServiceSM (TARSSM) into the ACT and implement certain enhancements to ACT. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-40578 (October 23, 1998); 63 F.R. 57342 (October 27, 1998). Comment period expired November 17, 1998.
98-46
Amend IM-1000-4 to make a technical correction and amend the Plan of Allocations and Functions by NASD to Subsidiaries (Delegation Plan) to clarify NASD Regulation's authority to inspect the books and records of The Nasdaq Stock Market. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-40252 (July 23, 1998); 63 F.R. 40759 (July 30, 1998). Comment period expired August 20, 1998.
98-45
Amend Rules 3010 and 3110 to delay the effective date of the provision in NtM 98-11 addressing the review of incoming, nonelectronic correspondence until Sept. 30, 1998. The delay will allow NASDR to address the regulatory concerns necessitating the review of incoming, non-electronic correspondence and at the same time to respond to concerns raised by member firms about the difficulty of conducting such review. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-40178 (July 7, 1998); 63 F.R. 37911 (July 14, 1998). Comment period expired August 4, 1998.
98-42
Amend Rule 10335 to extend the effectiveness of the rule for six months to January 3, 1999. Accelerated approval granted by the SEC in Release No. 34-40124 (June 24, 1998); 63 F.R. 36282 (July 2, 1998). Comment period expired on July 28, 1998.
98-37
Amend rule 7010(l) to extend through August 31, 1998, the fees currently charged for the execution of transactions in SelectNet. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-40050 (June 1, 1998); 63 F.R. 31254 (June 8, 1998). Comment period expired June 29, 1998.
98-36
Amend the NASD Regulation By-Laws to permit one or more Industry members of the National Adjudicatory Council (NAC) to serve as at-large Industry members of the NAC, rather than requiring that all Industry members represent a region as is currently provided in the NASD Regulation By-Laws. Amendment No. 1 filed with the SEC on May 19, 1998. Published for comment by the SEC in Release No. 34-40062 (June 3, 1998); 63 F.R. 32033 (June 11, 1998). Comment period expired July 2, 1998. Approved by the SEC in Release No. 34-40213 (July 15, 1998); 63 F.R. 39619 (July 23, 1998).
98-34 Amend Rule 9514 to permit members of NASD Regulation Office of Hearing Officers to oversee non-summary proceedings involving membership cancellations and suspensions related to failure to comply with an arbitration award settlement agreement. Amendment No. 1 filed with the SEC on May 4, 1998. Published for comment by the SEC in Release No. 34-39957 (May 1, 1998); 63 F.R. 26238 (May 12, 1998). Comment period expired on May 27, 1998. Approved by the SEC in Release No. 34-40026 (May 26, 1998); 63 F.R. 30789 (June 5, 1998).
98-31
Amend Rules 3010 and 3110 to implement the effective date of recently-approved amendments to these rules, with the exception of a provision in NtM 98-11 regarding the review of incoming correspondence. The amendments allow firms to develop flexible procedures for the review of correspondence with the public. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-39866 (April 14, 1998); 63 F.R. 19778 (April 21, 1998). Comment period expired May 12, 1998.
98-27
Adopt Interpretive Material (IM) to NASD Rule 4120 to codify, on a two-year pilot basis, the NASD's agreement to halt, upon the request of the SEC, all domestic trading in both the securities listed on Nasdaq and all equity and equity-related securities trading in the OTC market dealing with trading halts. IM-4120-3 replaces NASD IM-4120-2 which expired on December 31, 1997. Accelerated approval granted by the SEC in Release No. 34-39846 (April 9, 1998); 63 F.R. 18477 (April 15, 1998). Comment period expired on May 6, 1998.
98-25 Amend Rule 7010 to establish an annual, scaled administrative fee, payable by Nasdaq market data distributors and vendors, for data usage, monitoring costs and other administrative expenses incurred by Nasdaq. Once effective, Nasdaq will suspend indefinitely its current contractual requirement that Nasdaq real-time data distributors and vendors provide an annual accountant-certified list of its subscribers who receive Nasdaq data. Published for comment by the SEC in Release No. 34-40035 (May 27, 1998); 63 F.R. 30276 (June 3, 1998). Comment period expired on June 24, 1998. Approved by the SEC in Release No. 34-40454 (September 22, 1998); 63 F.R. 51980 (September 29, 1998).
98-21
Amend Rule 4613(a)(1)(C) to permanently allow Market Makers to quote their actual size by reducing the minimum quotation size requirement for Market Makers in all securities listed on Nasdaq to one normal unit of trading (Actual Size Rule). Published by the SEC in Release No. 34-39760 (March 16, 1998); 63 F.R. 13894 (March 23, 1998). Comment period expired April 13, 1998. Approved by the SEC in Release No. 34-40211 (July 15, 1998); 63 F.R. 39322 (July 22, 1998).
98-19
Postpone the effective date of amendments to IM-8310-2 and Forms U-4 and U-5 to March 16, 1998. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-39371 (March 6, 1998); 63 F.R. 12558 (March 11, 1998). Comment period expired April 3, 1998.
98-15
Amend Rule 2860(b) to establish that NASD member firms and their customers shall have the same position and exercise limits for FLEX Equity Options as the firms that are members of the exchange on which such FLEX Equity Options trade. Accelerated approval granted by the SEC in Release No. 34-39668 (February 20, 1998); 63 F.R. 10057 (February 27, 1998). Comment period expired on April 3, 1998.
98-10
Amend Rules 3010 and 3110 to postpone indefinitely the effective date of recently approved amendments to these rules (See NtM 98-11) and to allow the NASDR an opportunity to consider comment letters received from the public. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-39665 (February 13, 1998); 63 F.R. 9032 (February 23, 1998). Comment period expired March 16, 1998.
98-04
To change the interpretation of the Code of Arbitration Procedure such that claims relating to transactions in exempted securities, including government and municipal securities, may be submitted to the Office of Dispute Resolution for arbitration under the NASD's Code of Arbitration Procedure without limitation. Amendment No. 1 filed with the SEC on February 6, 1998. Amendment No. 2 filed with the SEC on March 30, 1998. Published for comment by the SEC in Release No. 34-39880 (April 16, 1998); 63 F.R. 20232 (April 23, 1998). Comment period expired May 14, 1998. Approved by the SEC in Release No. 34-40103 (June 19, 1998); 63 F.R. 34951 (June 26, 1998).
98-02 Amend Rule 2860(b)(3)(A)(vii)(c) to extend, until December 31, 1999, the Association's pilot program for exemptions from equity option position limits for certain hedged positions. Amendment No. 1 filed with the SEC on March 23, 1998. Accelerated approval granted by the SEC in Release No. 34-39865 (April 14, 1998); 63 F.R. 19992 (April 22, 1998). Comment period expired May 13, 1998.
97-96 Amend Rule 10333(d) to adjust the Hearing Process Fee Schedule so that the amounts in dispute of the lowest brackets in the Rule 10333(d) Hearing Process Fee Schedule are consistent with the dollar amount at which the Pre-hearing Process Fee is imposed. Notice of filing and immediate effectiveness published by the SEC in Release No. 34-30504 (December 31, 1997); 63 F.R. 1134 (January 8, 1998). Comment period expired January 29, 1998.
97-79 Amend IM-10104, 10205 and 10332 of the Code of Arbitration Procedure to increase the arbitrator honoraria, arbitration filing fees, and hearing session deposits for intra-industry and public investor arbitrations. The proposed rule change will amend the fee schedules to graduate fees further according to the amount in dispute to reflect more closely the costs associated with resolving controversies. Amendment No. 1 filed with the SEC on November 12, 1997. Published for comment by the SEC in Release No. 34-39346 (November 21, 1997); 62 F.R. 63580 (December 1, 1997). Comment period expired December 22, 1997. Amendment No. 2 filed with the SEC on December 18, 1997. Approved by the SEC in Release No. 34-41056 (February 16, 1999); 64 F.R. 10041 (March 1, 1999).
97-20
Amend Rule 6440 to eliminate restrictions on members to accept stop orders and certain stop limit orders in exchange-listed securities. Published for comment by the SEC in Release No. 34-38429 (March 21, 1997); 62 F.R. 14953 (March 28, 1997). Comment period expired April 18, 1997. Amendment No. 1 filed with the SEC on April 1, 1997. Approved by the SEC in Release No. 34-39857 (April 15, 1998); 63 F.R. 19547 (April 20, 1998). Effective April 14, 1998.
Rule Filings That Have Been Withdrawn
98-83
Simplification of Corporate Finance filing fees. This filing was withdrawn on January 22, 1999, and replaced by rule filings 99-01 and 98-87.
98-71
Amend Rule 7010 to establish a pilot proprietary trading data distribution facility accessible to NASD members and qualified institutional buyers through its NasdaqTrader.com Web Site. Under the proposal, NASD member firms will be able to obtain data, verified for accuracy by ACT, regarding their trading volume in securities in which they report volume as well as disseminate some or all of that information to other users of the system. Published for comment by the SEC in Release No. 34-40542 (October 9, 1998), 63 FR 55909 (October 19, 1998). Withdrawn on November 5, 1998. Withdrawal announced by the SEC in Release No. 34-40658 (November 10, 1998); 63 F.R. 64136 (November 18, 1998).
98-50
Adopt Rules 2315 and 2360 to require members to review current issuer information prior to recommending a transaction to a customer in an OTC equity security and to provide certain disclosure information on the trade confirmation for customer transactions in an OTC equity security. This rule filing was withdrawn on January 13, 1999.
98-41
Amend Rule 4613(a)(5) to permit Market Makers to decrement their quoted size by the amount of a preferenced SelectNet order if the Market Maker has programmed its trading system to execute automatically such orders upon receipt. This rule filing was withdrawn on July 16, 1998.
98-30
Amend Rule 3110 to: (1) change the definition of "institutional account" to include the accounts of investment advisers that, under new rules adopted by the SEC, are now required to register with the states; and (2) exclude certain customer accounts from the requirement to obtain certain tax and employment information from the customer. This rule filing was withdrawn on May 7, 1998.
98-24 Amend IM-8310-2 to clarify that NASD Regulation will continue to release information concerning civil judgments and arbitration decisions in securities and commodities disputes involving public customers and registered persons or member firms. This rule filing was withdrawn on April 6, 1998.
98-12
Amend IM-2110-1 and Rules 2710 and 2720 to clarify the definition of a "Public Offering." Accelerated approval requested. This rule filing was withdrawn on April 27, 1998.
97-80
Amend Rule 2860(b) to exempt conventional equity option transactions that are intermediated by a member pursuant to Exchange Act Rule 15a-6(a)(3) from options position limits provided that the member reports such transactions to the Association in accordance with the options position reporting requirements. Published for comment by the SEC in Release No. 34-39417 (December 9, 1997); 62 F.R. 65838 (December 16, 1997). Comment period expired January 6, 1998. This rule filing was withdrawn on July 13, 1998.
97-67
Amend Rule 2860 to align the NASD's position limit rules for conventional equity options with the position limit rules for FLEX Equity Options. This filing was withdrawn on February 13, 1998, and replaced by rule filing 98-23.
Endnote
1For purposes of this service, Nasdaq will rely on the definition of "Qualified Institutional Buyer" found in Rule 144A of the Securities Act of 1933.