Notice to Members 03-28
SEC Approves NASD Rule Proposal Requiring Quotation Recording and Reporting for OTC Equity Securities
On March 27, 2003, the Securities and Exchange Commission (SEC) approved proposed rule changes by NASD that require members to record and maintain their proprietary quotations in over-the-counter (OTC) Equity Securities displayed in certain automated inter-dealer quotations systems, such as the Electronic Pink Sheets (EPS), and to report such data to NASD upon request. The new rule text is contained in Attachment A and becomes effective on June 27, 2003.
At this time, NASD is requiring that the quotation data described herein be submitted to NASD on a weekly basis. NASD may alter the frequency of the reporting of this data to NASD based on regulatory need. NASD will notify members of any changes in reporting frequency in a Notice to Members and will provide adequate time for members to adjust their systems or reporting arrangements accordingly.
Questions concerning this Notice may be directed to the Legal Section, Market Regulation, NASD, at (240) 386-5126; or to Office of General Counsel, Regulatory Policy and Oversight, NASD, at 202-728-8071.