NASD Notice to Members 03-69 - November 2003

SEC Approves Changes to Rules on Reporting of Transactions through Electronic Communications Networks (ECNs); Changes Effective November 10, 2003

Executive Summary

NASD is issuing this Notice to replace and supersede Notice to Members (NtM) 03-55, which discussed the SEC's approval of rules on reporting of transactions executed through electronic communications networks (ECNs). The effective date of the rules was originally October 6, 2003, but was delayed until November 10, 2003. Minor amendments to the rules have since been filed with the Securities and Exchange Commission (SEC) on an immediately effective basis, and are reflected in this Notice. This Notice also repeats information that is in NtM 03-55.

 

On September 4, 2003, the SEC approved changes to rules governing the reporting of transactions through NASDAQ’s Automated Confirmation Transaction Service (ACT) in order to clarify the reporting requirements applicable to transactions conducted through electronic communications networks (ECNs). The new rules do not apply to trades reported through NASD’s Trade Reporting and Comparison Service (TRACS).

 

The changes, which take effect November 10, 2003, describe the three methods that may be used by ECNs and/or their customers to report trades executed through an ECN’s facilities. ECNs that use ACT to report some or all of the transactions executed through their facilities are required to file a notice of their trade-reporting methods prior to November 10, 2003. Please use Attachment A to file this notice. Notices must be filed with NASDAQ’s MarketWatch Department, 9509 Key West Avenue, Rockville, MD 20850, Attention: Sheila Dagucon (or you may fax the notification to (240) 386-6050); and NASD’s Market Regulation Department, 9509 Key West Avenue, Rockville, MD 20850, Attention: Alternative Trading Systems Group (or you may fax the notification to (240) 386-5139).

 

Questions regarding this Notice may be directed to Sheila Dagucon, NASDAQ MarketWatch, at (240) 386-6049; or John Yetter, NASDAQ Office of General Counsel, at (202) 912-3039..