NASD Notice to Members 00-29 - May 2000

SEC Approves Changes to Nasdaq Locked/Crossed Markets Rule; Effective Date: June 5, 2000

Executive Summary

On February 7, 2000, the Securities and Exchange Commission (SEC) approved changes to National Association of Securities Dealers, Inc. (NASD®) Rule 4613(e), which relates to the entering of locking and crossing quotes by Nasdaq® market participants (Market Makers and electronic communications networks (ECNs)). The rule change alters market participants’ obligations regarding the entry of locking/crossing quotes prior to the opening of the Nasdaq market at 9:30 a.m. Eastern Time (ET), and sets out specific obligations for parties to a lock/cross, which are determined based on the time the locked/crossed market occurs.


Questions regarding this Notice should be addressed to John Malitzis, Assistant General Counsel, Office of General Counsel, The Nasdaq Stock Market, Inc. (The Nasdaq Stock Market®), at (202) 728-8245; or Thomas Moran, Assistant General Counsel, Office of General Counsel, The Nasdaq Stock Market, at (202) 728- 8401; or the Legal Section, Market Regulation Department, NASD Regulation, Inc. (NASD RegulationSM), at (301) 590-6410.