On July 10, 2000, the Securities and Exchange Commission (SEC) approved rule changes proposed by the National Association of Securities Dealers, Inc. (NASD®) that require a firm that is promoting a day-trading strategy to furnish a risk disclosure statement to a non-institutional customer prior to opening an account for the customer. The firm will further be required to either: (1) approve the customer’s account for a day-trading strategy; or (2) obtain from the customer a written agreement that the customer does not intend to use the account for day- trading purposes. As part of the account approval process, the firm will be required to make a threshold determination that day trading is appropriate for the customer.
Questions regarding this Notice may be directed to Eric Moss, Assistant General Counsel, Office of General Counsel, NASD Regulation, Inc. (NASD RegulationSM), at (202) 728-8982.
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