NASD Notice to Members 03-45 - August 2003

SEC Approves Amendments to TRACE Rule 6260 to Require New Issue Notifications to Include Dissemination Eligibility Information and Be Submitted in Writing

Executive Summary

On August 8, 2003, the Securities and Exchange Commission (SEC or Commission) approved amendments to Rule 6260 of the Trade Reporting and Compliance Engine (TRACE) Rules, the Rule 6200 Series. The amendments to Rule 6260 require that a managing underwriter, or, if there is no managing underwriter, the group of underwriters, of an initial offering of a TRACE-eligible security provide information that will aid NASD in determining if the new issue will be subject to dissemination when the managing underwriter or other underwriter submits the notification of the new issue to NASD (new issue notification). The specific additional information required will vary according to the dissemination requirements in Rule 6250. The amendments also require that the new issue notification be submitted in writing. Rule 6260, as amended, is set forth in Attachment A.

 

Questions concerning this Notice should be emailed to tracefeedback; Elliot Levine, Chief Counsel, Market Operations, Regulatory Services and Operations, at 202-728-8405; or, Sharon K. Zackula, Assistant General Counsel, Office of General Counsel, Regulatory Policy and Oversight, at 202-728-8985.