On June 13, 1996, the Securities and Exchange Commission approved amendments to Section 5 of Schedule A to the NASD By-Laws (Schedule A). The amendments delete the interest and dividend exclusion from gross revenue for member assessment purposes. The amendments, however, allow a member to deduct from its gross revenue all interest and dividend expenses but not in excess of related interest and dividend revenue or, alternatively, to deduct 40 percent of interest earned by the member on customer securities accounts. The amendments also allow a member to deduct the first $50,000 of net interest and dividend revenue from gross revenue.
Questions regarding this Notice may be directed to James E. Shelton, NASD Finance, at (301) 590-6757.