Notice to Members 00-79

Nasdaq Adopts Alternative Approach for Complying With Riskless Principal Trade-Reporting Rules and Issues Net Trading Interpretation; Riskless Principal Trade-Reporting Rules will be Implemented on February 1, 2001

The Nasdaq Stock Market, Inc. (Nasdaq®) has adopted an alternative approach for reporting riskless principal transactions in Nasdaq, over-the-counter (OTC), and exchange-listed securities. Nasdaq also has adopted an interpretation with respect to the use of negative consent letters for net trading of Nasdaq and OTC securities. The Riskless Principal Trade-Reporting Rules will be implemented on February 1, 2001. NOTE: This Notice should be read in conjunction with Notices to Members 99-65 and 99-66.