NASD Notice to Members 02-35 - June 2002

NASD Adopts Amendments Regarding the Posting of Margin Disclosure and Day-Trading Risk Disclosure Statements on Web Sites—Effective Date: July 1, 2002

Executive Summary

NASD has adopted amendments to require the posting of certain investor disclosure statements on members' Web sites. Specifically, NASD has amended (1) NASD Rule 2341 (Margin Disclosure Statement) to require members that permit customers to open accounts online or to engage in transactions in securities online to post the margin disclosure statement on their Web sites and (2) NASD Rule 2361 (Day-Trading Risk Disclosure Statement) to require members that promote a day-trading strategy to post the day-trading risk disclosure statement on their Web sites. The rule change became effective immediately upon filing with the Securities and Exchange Commission (SEC) on May 29, 2002 and will become operative on July 1, 2002. Attachment A contains the text of the amendments.

 

Questions regarding this Notice to Members may be directed to Grace Yeh, Assistant General Counsel, at (202) 728-6939.