Notice to Members 05-22

New Electronic Reporting Requirements for Large Options Positions Reports for Filing of Reportable Conventional Options Positions

Effective Date Extended to July 11, 2005.

As a result of enhancements to the Securities Industry Automation Corporation's (SIAC) Large Options Positions Reporting system, NASD is eliminating the manual reporting of Large Options Positions Reports (LOPRs). SIAC now has the capability to accept LOPRs for both conventional and standardized options1 positions on an electronic basis. As a result, all members will be required to file LOPRs through SIAC on an electronic basis. As of May 9, 2005, NASD will no longer accept manually filed LOPRs.

All members must successfully test with SIAC to ensure that they have the ability to report large options positions in the required format. Testing is currently available and must be completed by May 6, 2005.

Questions concerning these new reporting provisions can be directed to Mark G. Nolan, Team Leader, Market Regulation Department, at (240) 386-6174; or Susan Tibbs, Deputy Director, Market Regulation Department, at (240) 386-5082.

Effective Date Extended to July 11, 2005.