SR-NASD-2003-079

To Establish Effective Dates For NASD Rule 2711, Research Analysts and Reports

NASD has filed with the SEC a proposed rule change to establish July 30, 2003, or until the date a superseding permanent exemption is approved by the SEC and becomes effective, as the effective date for Rules 2711(b) and (c) for members that over the previous three years, on average per year, have participated in 10 or fewer investment banking transactions as manager or co-manager and generated $5 million or less in gross investment banking revenues from those transactions. Rules 2711(b) and (c) prohibit a research analyst from being subject to the supervision or control of any employee of a member’s investment banking department and further require legal or compliance personnel to intermediate certain communications between the research department and the investment banking department or the company that is the subject of a research report or recommendation ("subject company").