Notice to Members 03-16
SEC Approves New Rule and Rule Amendments Concerning Audit Trail and Trading Halt Requirements for ATSs that Trade Security Futures
On January 27, 2003, the Securities and Exchange Commission (SEC) approved rule changes by NASD pertaining to coordinated surveillance, audit trails, and trading halts for Alternative Trading Systems (ATSs) that trade security futures. Specifically, these rule changes: (1) create new Rule 3115 to establish recordkeeping requirements for ATSs that trade security futures; and (2) amend NASD Rule 3340 to prohibit members (including ATSs) and associated persons from effecting any transaction or publishing a bid and/or unpriced indication of interest for a security future when there is a regulatory trade halt in effect. The rules are set forth in Attachment A. They become effective on March 31, 2003.
Questions concerning this Notice may be directed to the Office of General Counsel, NASD Regulatory Policy and Oversight: Gary L. Goldsholle, Associate General Counsel, (202) 728-8104; or Patricia Albrecht, Assistant General Counsel, (202) 728-8026; or NASD Market Regulation Department, Futures Policy, De'Ana Dow, Director and Chief Counsel, (240) 386-5120.