Notice to Members 99-42

NASD Offers Guidance on Complying with Notice Requirements of New SEC Rule Regarding Alternative Trading Systems

On April 21, 1999, Securities and Exchange Commission (SEC) Rules 3a1-1, 3b-16, and Regulation Alternative Trading System (Regulation ATS) became effective. Rule 301(b)(2) of Regulation ATS requires alternative trading systems (ATS) to comply with certain notice provisions. Specifically, duplicate originals of certain reports that must be filed with the SEC pursuant to Regulation ATS must also be filed simultaneously with the National Association of Securities Dealers, Inc. (NASD®) if the NASD is the designated examining authority (DEA) for the ATS.

Questions regarding this Notice may be directed to Patricia Casimates, Assistant Director, Market Regulation Department, NASD Regulation, Inc., (NASD Regulation®), at (301) 590-6447.