NASD Notice to Members 01-47 - July 2001

SEC Approves Rule Change Prohibiting Publication of Quotations or Indications Of Interest in a Security During a Trading Halt

Executive Summary

On June 5, 2001, the Securities and Exchange Commission (SEC) approved an amendment to National Association of Securities Dealers, Inc. (NASD®) Rule 3340 to prohibit publication of quotations or indications of interest in a security during a trading halt. Previously, NASD Rule 3340 expressly prohibited members from directly or indirectly effecting a transaction in a security during a trading halt but did not expressly prohibit members from publishing quotations or indications of interest during a halt.

 

The rule change becomes effective on August 13, 2001. Questions regarding this Notice may be directed to Kathy O'Mara, Assistant General Counsel, Office of General Counsel, NASD Regulation, Inc., at (202) 728-8056.