NASD Notice to Members 06-47 - September 2006

SEC Approves New Rule 2441 Requiring Disclosure and Consent When Trading on a Net Basis with Customers; Effective Date: October 2, 2006

Executive Summary

On June 30, 2006, the Securities and Exchange Commission (SEC) approved new NASD Rule 2441, Net Transactions with Customers, which requires disclosure and consent when trading on a net basis with customers.¹ Rule 2441, as adopted, is set forth in Attachment A of this Notice. The rule becomes effective on October 2, 2006.

 

Questions regarding this Notice may be directed to the Legal Section, Market Regulation, Regulatory Policy and Oversight (RPO) at (240) 386-5126; or the Office of General Counsel, RPO at (202) 728-8071.

 

¹ See Securities Exchange Act Release No. 54088 (June 30, 2006), 71 FR 38950 (July 10, 2006) (File No. SR-NASD-2004-135).