NASD Notice to Members 99-20 - March 1999

SEC Approves Rule Change Increasing Position Limits on Standardized Equity Options; NASD Reminds Members of Their Reporting Obligations When Trading Options

Executive Summary

On January 11, 1999, the Securities and Exchange Commission (SEC) approved amendments to National Association of Securities Dealers, Inc. (NASD®) Rule 2860(b)(3)(A), tripling the position limits on standardized (exchange-traded) equity options to make them equivalent to the limits on conventional (over-the-counter) equity options overlying the same security. These amendments were effective upon approval.

Separately, NASD Regulation’s Market Regulation Department is reminding members of their reporting obligations when trading options.

Questions regarding the amendments to Rule 2860(b)(3)(A) may be directed to Gary L. Goldsholle, Assistant General Counsel, Office of General Counsel, NASD Regulation, Inc. (NASD RegulationSM) at (202) 728-8104; and questions regarding members’ reporting obligations may be directed to Jospeh Alotto, Supervisor, Market Regulation Department, NASD Regulation, at (301) 590-6845.