NASD Notice to Members 98-073 - September 1998

Firms Required to Register for Order Audit Trail System; Amendments to OATS Rules

Executive Summary

In March 1998, the Securities and Exchange Commission (SEC) approved new National Association of Securities Dealers, Inc. (NASD^®) Rules 6950 through 6957—the Order Audit Trail System (OATS^SM) Rules. The effective dates for the OATS Rules vary according to the following schedule:

• Phase 1: By March 1, 1999, electronic orders received by Market Makers and Electronic Communication Networks (ECNs) must be reported.
• Phase 2: By August 1, 1999, all electronic orders must be reported.
• Phase 3: By July 31, 2000, all non-electronic, or manual, orders must be reported.(See Notice to Members 98-33 for a complete description of the OATS Rules.)

• OATS Subscriber Initiation and Registration Form