SR-NASD-2005-033

Proposed Amendment to Rule 3010(b)(2)(L) Relating to Taping Rule "Opt Out" and Exemption Provisions

NASD has filed with the Securities and Exchange Commission ("SEC" or "Commission") a proposed rule change to amend paragraph (L) of NASD Rule 3010(b)(2) ("Taping Rule" or "Rule") to (1) require member firms that are seeking an exemption from the Rule to submit their exemption requests to NASD within 30 days of receiving notice from NASD or obtaining actual knowledge that they are subject to the provisions of the Rule; and (2) clarify that firms that trigger application of the Taping Rule for the first time can elect to either avail themselves of the one-time "opt out provision" or seek an exemption from the Rule, but they may not seek both options.