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SR-NASD-1999-041 |
Approval Procedures for Day-Trading Accounts
NASDR has filed with the SEC a proposed rule change to amend the Rule 2300 Series of the NASD Rules to include new Rules 2360 and 2361. The proposed rule change would require a member firm that is promoting a day-trading strategy to furnish a risk disclosure statement to a non-institutional customer prior to opening an account for the customer and either to (1) approve the customer's account for a day-trading strategy or (2) obtain from the customer a written agreement that the customer does not intend to use the account for day-trading purposes. As part of the account approval process, the firm would be required to make a threshold determination that day trading is appropriate for the customer.
