Delivery of a Margin Disclosure Statement to Non-Institutional Customers

The NASD, through its wholly owned subsidiary, NASD Regulation, Inc., has filed with the SEC a proposed rule change to add new Rule 2341. The proposed rule change would require members to deliver to non-institutional customers, prior to or at the opening of a margin account, a specified disclosure statement that discusses the operation of margin accounts and the risks associated with trading on margin. The proposed rule change also would require members to deliver the disclosure statement annually to all non-institutional customers with margin accounts.