NASD Regulation, Inc. (NASD Regulation®) requests comment from members, investors, and other interested parties on a proposed amendment to NASD Rule 2320(g) (the "Three Quote Rule") to exclude transactions in foreign securities effected by a National Association of Securities Dealers, Inc. (NASD®) member as agent or riskless principal on a foreign market that is the primary market for the security. Under the proposal, primary market would be defined as either: (1) the market with at least 50 percent of the worldwide trading volume in the particular foreign security during the three-month period preceding the date of the transaction in question; or (2) any market whose quotations are part of a consolidated quotation system that includes quotations from the market that had at least 50 percent of the worldwide trading volume in the particular foreign security during the three-month period preceding the date of the transaction in question.
As noted, written comments should be submitted to Joan C. Conley. Questions concerning this NASD Notice to Members--Request for Comments may be directed to the Legal Section, Market Regulation Department, at (240) 386-5126; or Stephanie M. Dumont, Associate General Counsel, Office of General Counsel, NASD Regulation, at (202) 728-8176.
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