NASD Notice to Members 00-70 - October 2000 

Nasdaq Requests Comment on Extending Manning Limit Order Protection Interpretation to Premarket Hours; Comment Period Expires October 31, 2000

Executive Summary

The Nasdaq Stock Market, Inc. (The Nasdaq Stock Market®) is seeking member comment on a proposal to extend the National Association of Securities Dealers, Inc. (NASD®) Manning Limit Order Protection Interpretation (IM-2110-2 or Manning) at the customer’s discretion to premarket hours (8:40 a.m.1 to 9:30 a.m. Eastern Time). Manning prohibits an NASD member firm from trading ahead of a customer limit order. Manning currently applies only during regular Nasdaq® trading hours.

The proposal is designed to respond to increasing member activity in premarket hours and to provide customers with the opportunity to have their priced orders protected and potentially executed in this premarket period. Limit orders from customers who do not elect to have their orders protected in the 8:40 a.m. to 9:30 a.m. time period will continue to be protected and executed in the normal fashion at the market open when Manning already applies.

Questions concerning this Notice to Members—Request for Comment may be directed to Thomas P. Moran, Assistant General Counsel, Office of General Counsel, The Nasdaq Stock Market, at (202) 728-8294.