NASD Notice to Members 04-39 - May 2004

SEC Approves Amendments to Clarify the Term “TRACE-Eligible Security” and to Expand the Scope of an Exemption from TRACE Reporting Requirements; Effective Date: June 17, 2004

Executive Summary

On April 2, 2004, the Securities and Exchange Commission (SEC or Commission) approved amendments to Rules 6210 and 6230 of the Trade Reporting and Compliance Engine (TRACE) rules, the Rule 6200 Series. The amendments clarify certain terms used in the definition, "TRACE-eligible security," and expand the trade reporting exemption to qualifying transactions in any TRACE-eligible security that is listed and quoted on The Nasdaq Stock Market, Inc. (NASDAQ). Rules 6210 and 6230, as amended, are set forth in Attachment A.

 

The amendments to Rules 6210 and 6230 will become effective on June 17, 2004.

 

Questions concerning this Notice should be directed to tracefeed back@nasd.com; Elliot Levine, Chief Counsel, Market Operations, Markets, Markets, Services and Information, at 202-728-8405; or Sharon K. Zackula, Associate General Counsel, Office of General Counsel, Regulatory Policy and Oversight, at 202-728-8985.