NASD Notice to Members 98-006 - January 1998

SEC Approves Changest to Rules on Market Maker Withdrawals and Reinstatements

Executive Summary

On December 10, 1997, the Securities and Exchange Commission (SEC) approved amendments to National Association of Securities Dealers, Inc. (NASD(r)) rules governing market maker withdrawals and reinstatements. Specifically, the rule changes: (1) establish objective standards for the reinstatement of market makers who have been "SOESed out of the Box" or accidentally withdraw from a stock; (2) broaden the bases for excused withdrawal and require that requests based on religious holidays or vacation be made only one day in advance; and (3) transfer jurisdiction concerning appeals of staff determinations to the Market Operations Review Committee. The rule changes are effective immediately.