NASD Notice to Members 98-092 - November 1998

NASD Regulation Articulates Position on the Application of NASD Rule 2680 to U.S. Broker/Dealers that Intermediate Transactions Pursuant to Exchange Act Rule 15a-6(a)(3)

Executive Summary

Through this Notice, NASD Regulation, Inc. (NASD RegulationSM) is establishing an interpretation that National Association of Securities Dealers, Inc. (NASD®) Rule 2860(b)(3) options position limits apply with respect to options transactions that are intermediated by member firms pursuant to Exchange Act Rule 15a-6(a)(3). Members are also reminded of the reporting obligations under Rule 2860(b)(5) with respect to such Rule 15a-6(a)(3) transactions.