Notice to Members 02-01

Rule Proposal Regarding Nasdaq Separation and the Alternative Display Facility

SEC Comment Period Expired January 21, 2002

On December 14, 2001, the Securities and Exchange Commission (SEC or Commission) published for comment a proposed rule change filed by the National Association of Securities Dealers, Inc. (NASD®)1 that would (1) revise the NASD rules to reflect Nasdaq's anticipated approval as a national securities exchange and its resultant separation from the NASD and (2) establish the rules that would govern trading otherwise than on an exchange, including the implementation and operation of the NASD Alternative Display Facility (ADF).

Persons wishing to make written comments should submit six copies thereof with the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. All submissions should refer to the File No. SR-NASD-2001-90 and should be submitted to the SEC by January 21, 2002.