NASD Notice to Members 97-80 - November 1997

SEC Approves Amendments to Syndicate Short Covering Requirements and Other Related Amendments; Effective Immediately

Executive Summary

On October 3, 1997, the Securities and Exchange Commission (SEC) approved, on an accelerated basis, amendments to National Association of Securities Dealers, Inc. (NASD®) Rules 2710, 4624, and 6540 that replace the requirement that members provide the NASD with information on the amount of the syndicate short position with a requirement that members maintain this information in their files.1  In addition, the amendments clarify that members are required to request an Underwriting Activity Report (UAR) with respect to a security that is considered “actively-traded” under Rule 101 of SEC Regulation M and excludes all exchange-listed securities from the obligation to request a UAR.  Finally, the amendments clarify that members are required to submit pricing information with respect to any security that is considered “actively-traded” under Rule 101, regardless of whether listed on a national securities exchange.  The amendments are immediately effective.  The text of the amendments is attached to this Notice.

 

Questions regarding this Notice may be directed to Suzanne E. Rothwell, Chief Counsel, Corporate Financing, NASD Regulation, Inc., and Richard J. Fortwengler, Associate Director, Corporate Financing, NASD RegulationSM, at (202) 974-2700.