NASD Notice to Members 98-060 - July 1998

NASD Extends Filing Period for New Equity Trader Examination and Responds to Questions Regarding New Equity Trader Qualification Rule

Executive Summary

On April 1, 1998, NASD Regulation, Inc., implemented amendments to the National Association of Securities Dealers, Inc. (NASD®) Registration Rules regulating the qualification of representatives who trade equity securities in The Nasdaq Stock Market® (Nasdaq®) and/or over-the-counter (OTC) (see Notice to Members 98-17 for full details on the amendments to the Registration Rules). There is no grandfather provision in the amended rules for persons who functioned as equity traders before April 1, 1998. Such persons may continue functioning as equity traders but must pass the new Equity Trader Examination (Series 55) by May 1, 2000. To be eligible for this extended qualification period, equity traders had to submit applications to NASD RegulationSM before May 1, 1998. The NASD now has amended its Registration Rules to extend the filing period to August 31, 1998, for persons who were functioning as equity traders before May 1, 1998, and who missed that cut-off date for filing their applications for the Series 55 Examination.