NASD Notice to Members 01-01 - January 2001

SEC Approves Proposed Changes to NASD Rule 2860

Executive Summary

On December 13, 2000, the Securities and Exchange Commission (SEC) approved amendments to National Association of Securities Dealers, Inc. (NASD®) Rule 2860. The amendments:

 

(1) apply the NASD's options position and exercise limits to members that effect trades for non-member brokers and non-member dealers;

 

(2) require members to report the options positions that they effect for non- member brokers and non-member dealers where such positions meet the reporting thresholds under NASD rules;

 

(3) codify an interpretive position with respect to which firms are required to report standardized options positions under the NASD's options position reporting requirements; and

 

(4) clarify that a member may have its clearing firm report options positions to the NASD on the member's behalf.

 

The amendments become effective on February 15, 2001.

 

Questions concerning this Notice may be directed to the NASD Regulation, Inc. Office of General Counsel at (202) 728-8071, or Gary L. Goldsholle, Associate General Counsel, Office of General Counsel, NASD RegulationSM, at (202) 728- 8104.