NASD Notice to Members 06-68 - November 2006

SEC Approves Amendments to Rule 2340 to Allow DVP/RVP Customers to Elect Not to Receive Account Statements; Effective Date: November 22, 2006

Executive Summary

The Securities and Exchange Commission (SEC) has approved amendments to Rule 2340 that permit customers whose accounts are carried solely for the purpose of execution on a DVP/RVP (delivery versus payment/receive versus payment) basis to opt out of receiving customer account statements.1

The effective date of this rule change is November 22, 2006. Included with this Notice is Attachment A, the text of amended Rule 2340.

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

1 See Exchange Act Release No. 54811 (Nov. 22, 2006), 71 FR 69161 (Nov. 29, 2006) (Order Approving Proposed Rule Change; File No. SR-NASD-2006-066).

This rule change is similar to a rule change proposed by the New York Stock Exchange, Inc. (now known as New York Stock Exchange LLC). See Exchange Act Release No. 53826 (May 18, 2006), 71 FR 30211 (May 25, 2006).