Notice to Members 96-09

SEC Approves NASD Proposal Relating to Third-Market Trading in IPOs of Exchange-Listed Securities

On December 20, 1995, the Securities and Exchange Commission (SEC) approved a proposed Rule change by the NASD that prohibits NASD members from executing over-the-counter transactions in an exchange-listed security that is the subject of an initial public offering (IPO) until the security has opened for trading on the exchange that lists the security. The Rule change is effective immediately.

Questions regarding this Rule change should be directed to NASD Market Surveillance, at (301) 590-6080, or Thomas R. Gira, Assistant General Counsel, The Nasdaq Stock Market, Inc., at (202) 728-8957.