NASD Notice to Members 04-08 - February 2004

Effective Date of Amendments to NASD Rule 3370 (Affirmative Determination Requirements) Extended to April 1, 2004

Executive Summary

NASD is delaying the effective date of amendments to Rule 3370 (Prompt Receipt and Delivery of Securities—the "Affirmative Determination" Rule) approved by the SEC in November 2003, until April 1, 2004. The amendments expand the scope of the affirmative determination requirements to include orders received from broker/dealers that are not members of NASD (“non-member broker/dealers”). The effective date of the amendments originally was February 20, 2004. NASD understands that some members need to make significant technological changes to their systems to comply with the new requirements; therefore, NASD is extending the effective date to provide members with additional time to make such changes.

 

Questions concerning this Notice may be directed to Gary L. Goldsholle, Associate General Counsel, Regulatory Policy and Oversight, NASD, at (202) 728-8104; or Patricia M. Albrecht, Assistant General Counsel, Regulatory Policy and Oversight, NASD, at (202) 728-8026