Regulatory Notice 07-50

SEC Approves Amendments to NASD Rule 11870 and NYSE Rule 412 to Conform with NSCC's ACATS Transfer Cycle Time Frames; Effective Date: October 22, 2007

Executive Summary

The SEC approved amendments to NASD Rule 11870 and NYSE Rule 412 to make the time frames in the rules for validating or taking exception to an instruction to transfer a customer's securities account assets and for completing the transfer of the assets consistent with the time frames in the NSCC Automated Customer Account Transfer Service (ACATS) transfer cycle.1

As further discussed in this Notice, effective October 22, 2007, NSCC modified its rules to shorten the account transfer time frame with respect to certain types of transfers.2 NASD Rule 11870 and NYSE Rule 412, as amended, are set forth in Attachment A. The amendments became effective on October 22, 2007.

Questions concerning this Notice should be directed to:

  • Rachael Grad, Counsel, Office of General Counsel, at (202) 728-8290 (with respect to NASD Rule 11870).

  • Stephen Kasprzak, Principal Counsel, Risk Oversight and Operational Regulation, at (212) 656-5226 (with respect to NYSE Rule 412).

1 See Securities Exchange Act Release No. 56677 (October 19, 2007), 72 FR 60699 (October 25, 2007) (Order Granting Approval of a Proposed Rule Change Relating to NASD Rule 11870 (Customer Account Transfer Contracts) and NYSE Rule 412 (Customer Account Transfer Contracts) toMake the Time Frames in the Rules for Validating or Taking Exception to an Instruction to Transfer a Customer's Securities Account Consistent with the Time Frames in the Automated Customer Account Transfer Service; File No. SR-FINRA-2007-005).

2 See Securities Exchange Act Release No. 56678 (October 19, 2007) 72 FR 60701 (October 25, 2007) (Order Granting Approval of a Proposed Rule Change to Amend its Rules and Procedures with Regard to the Automated Customer Account Transfer Service (ACATS) and ACATS Fund/SERV Processing; File No. SR-NSCC-2007-13).