Notice to Members 00-48

NASD Adopts Rule Requiring Member Participation in Decimalization Testing; NASD Reminds Selected Members of Survey Deadline: July 28, 2000

In response to the Securities and Exchange Commission (SEC) Order requiring a decimalization "phase-in" plan, the National Association of Securities Dealers, Inc. (NASD®) has adopted a new rule (NASD Rule 3420) that will mandate member participation in decimalization testing. The rule became effective immediately upon filing with the SEC on June 27, 2000. Attachment A contains the text of the new rule. The NASD also wants to remind selected members to return the Decimalization Survey by July 28, 2000.

Questions regarding this Notice to Members may be directed to the NASD Decimalization Program Management Office (DPMO) toll free at: (888) 227-1330 or via e-mail; or to Kosha Kantharia Dalal, Assistant General Counsel, Office of General Counsel, NASD Regulation, Inc. (NASD RegulationSM), at (202) 728-6903.