Notice to Members 01-47

SEC Approves Rule Change Prohibiting Publication of Quotations or Indications of Interest in a Security During a Trading Halt

Note: The effective date for amendments to Rule 3340 (prohibiting the publication of quotations and indications of interest during a trading halt) has been delayed until October 9, 2001 to allow members more time to modify their systems.

On June 5, 2001, the Securities and Exchange Commission (SEC) approved an amendment to National Association of Securities Dealers, Inc. (NASD®) Rule 3340 to prohibit publication of quotations or indications of interest in a security during a trading halt. Previously, NASD Rule 3340 expressly prohibited members from directly or indirectly effecting a transaction in a security during a trading halt but did not expressly prohibit members from publishing quotations or indications of interest during a halt.

The rule change becomes effective on August 13, 2001. Questions regarding this Notice may be directed to Kathy O'Mara, Assistant General Counsel, Office of General Counsel, NASD Regulation, Inc., at (202) 728-8056.