NASD Notice to Members 96-83 - December 1996

NASD Regulation Solicits Comment on Proposed Rule Relating to Prohibition on Members Receiving any Payment to Publish a Quotation, Make a Market in an Issuer’s Securities, or Submit an Application in Connection Therewith

Executive Summary 

NASD Regulation, Inc. (NASD Regulation) requests comment on a new proposed rule, NASD® Rule 2460 (Rule), that would prohibit any payment by an issuer or the issuer’s affiliates and promoters, directly or indirectly, to a member for publishing a quotation, acting as a market maker, or submitting an application in connection therewith. This new proposed Rule is designed, among other things, to assure that members act in an independent capacity when publishing a quotation or making a market in an issuer’s securities.