SR-NASD-2004-175

Proposed Rule Change to Repeal NASD Rule 3110(b)(1), Rule 3210, Rule 3370(b) and Rule 11830 in Light of SEC Regulation SHO

 

NASD is filing with the Securities and Exchange Commission a proposed rule change to repeal NASD Rule 3110(b)(1), Rule 3210, Rule 3370(b) and Rule 11830 in light of the requirements of the SEC’s new short sale regulation, Regulation SHO under the Act. The SEC has indicated that it expects that Reg SHO provisions will supplant existing overlapping self-regulatory organization (SRO) rules. Accordingly, NASD believes that certain of its rules are duplicative of or overlap with Reg SHO requirements and therefore should be repealed.