NASD Special Notice to Members 98-033 - March 1998

SEC Approves New Order Audit Trail System (OATS)

Executive Summary

On March 6, 1998, the Securities and Exchange Commission (SEC) approved new National Association of Securities Dealers, Inc. (NASD® or Association) Rules 6950 through 6957 (Rules), which establish an Order Audit Trail SystemSM (OATSSM). The new Rules will be effective according to an implementation schedule that is described below. The text of the new Rules and a matrix that will assist members in understanding the phasing-in of the OATS requirements are attached. The Notice also generally discusses the OATS Reporting Technical Specifications and when they will be available and the forums that NASD Regulation, Inc. (NASD RegulationSM) will be conducting to inform firms about the new OATS Rules.