Amendments to Rule 2320(g) and Rule 3110(b)(2) Relating to Foreign Securities and Institutional Orders

This rule filing was withdrawn and was replaced with SR-NASD-2004-130.

NASD Regulation, Inc., has filed with the SEC a proposed rule change to amend NASD Rule 2320(g) (the “Three Quote Rule”) and the corresponding recordkeeping requirements under Rule 3110(b)(2), to: (1) exclude from the Three Quote Rule’s coverage transactions in foreign securities effected by an NASD member as agent or riskless principal on any foreign market that is a “primary market” for the security; and (2) permit members to obtain a written affirmative opt out from institutional customers that elect not to have the member comply with the Three Quote Rule requirements when executing their orders in non-Nasdaq securities.

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Withdrawal of proposed rule changePDF - 11.02 KB