Notice to Members 00-43
SEC Approves Changes to Transaction Reporting Procedures for Weighted Average and Special Pricing Formula Trades
On May 31, 2000, the Securities and Exchange Commission (SEC) approved changes to National Association of Securities Dealers, Inc. (NASD®) Rules 4632(a)(6), 4642(a)(6), and 6420(a)(6) regarding transaction reporting procedures for weighted average and other special pricing formula trades. NASD Rules 4632(a)(6), 4642(a)(6), and 6420(a)(6), as now amended, require all transactions, not just agency crosses, in Nasdaq®-listed and exchange-listed securities that are traded on a weighted-average basis or effected based on other special pricing formula, to be reported with the .W modifier. Prior to the rule change, only agency cross transactions - not principal or riskless principal transactions - that were effected at an average price or based on a special pricing formula were required to be reported with the .W modifier. These changes will go into effect on July 17, 2000.
Questions concerning this Notice may be directed to: Nasdaq MarketWatch at (800) 211-4953; John F. Malitzis, Nasdaq Office of General Counsel, at (202) 728-8245; Thomas P. Moran, Nasdaq Office of General Counsel, at (202) 728-8401; or Legal Section, Market Regulation Department, NASD RegulationSM, at (301) 590-6410.