SR-NASD-1998-023

Amendments to Rule 2860, Options Position Limits

NASDR has filed with the SEC a proposed rule change to amend Rule 2860(b) of the National Association of Securities Dealers, Inc. to: (1) increase the position limits on conventional equity options to three times the basic position limits for standardized equity options on the same security; (2) disaggregate conventional equity options from standardized equity options and FLEX Equity Options for position limit purposes; and (3) provide that the OTC Collar Aggregation Exemption shall be available with respect to an entire conventional equity options position, not just that portion of the position that is established pursuant to the NASD's Equity Option Hedge Exemption.