NASD Notice to Members 03-66 - October 2003

SEC Approves Proposed Changes to NASD Rule 2520; Effective Date: December 1, 2003

Executive Summary

On August 25, 2003, the Securities and Exchange Commission (SEC) approved amendments to NASD Rule 2520. As amended, Rule 2520 (1) reduces the customer maintenance margin requirements for certain non-equity securities; and (2) redefines "exempt account" and permits the extension of good faith margin treatment to certain non-equity securities held in "exempt accounts"; and (3) limits the amount of capital charges a broker/dealer may take in lieu of collecting marked to the market losses.

 

Questions concerning this Notice may be directed to Susan M. DeMando, Director, Financial Operations, Department of Member Regulation, at (202) 728-8411.