NASD Notice to Members 99-05 - January 1999

SEC Issues Guidance on Handling Customer Orders During Market-Wide Trading Halts

Executive Summary

On September 9, 1998, the Securities and Exchange Commission’s (SEC) Division of Market Regulation (the Division) issued Staff Legal Bulletin No. 8 setting forth the Division's views on the appropriate handling of customer orders when market-wide circuit breakers halt trading. In addition, the SEC again stressed that broker/dealers must have sufficient internal system capacity to operate properly during periods of market stress.1

 

Questions regarding this Notice should be directed to Thomas P. Moran, Senior Attorney, Office of General Counsel, The Nasdaq Stock Market, Inc., at (202) 728-8401.

 

1  See SEC Staff Legal Bulletin No. 8 (MR) (Division of Market Regulation-September 9, 1