Notice to Members 00-41

SEC Approves Trade Halt Rule for OTCBB; Effective Date: June 26, 2000

On May 22, 2000, the Securities and Exchange Commission (SEC) approved a rule change that allows The Nasdaq Stock Market, Inc. (The Nasdaq Stock Market®) to impose trading and quotation halts in securities quoted in the OTC Bulletin Board® (OTCBB). Under the rule change, Nasdaq® will halt trading in OTCBB issues in the following three instances:

• the OTCBB security is dually listed on a foreign market or is registered with a foreign regulatory authority and a foreign regulatory authority or market halts trading in the security;

• the OTCBB security is a derivative or component of a Nasdaq or an exchange-listed security and Nasdaq or the exchange halts trading in the underlying security; and

• the OTCBB issuer does not timely provide the NASD with information required by SEC Rule 10b-17.

The rule change goes into effect on June 26, 2000. The rule change is included with this Notice in Attachment A.

Questions regarding this rule change can be directed to the following:

For operational issues: Sheila Dagucon, Vice President, Nasdaq MarketWatch Department, at (301) 590-6435;

For general questions about the OTCBB: Liz Heese, Market Specialist, Nasdaq Trading and Market Services, at (202) 728-8191;

For issues related to Rule 10b-17 halts: Dorothy Kennedy, Director, Nasdaq Market Operations, at (203) 385-6243; or

For legal issues: John Malitzis, Assistant General Counsel, Nasdaq Office of General Counsel, at (202) 728-8245; or Mary Revell, Associate General Counsel, Nasdaq Office of General Counsel, at (202) 728-8203.