Notice to Members 03-30

SEC Approves Revisions to NASD By-Laws Regarding Trading Activity Fee

On May 30, 2003, the Securities and Exchange Commission ("SEC" or "Commission") approved revisions to NASD By-Laws, eliminating the current Regulatory Fee assessed upon NASD members and instituting a new transaction-based Trading Activity Fee ("TAF"). Approval of the TAF, along with previously approved revisions to both the Gross Income Assessment ("GIA") and the Personnel Assessment ("PA"), completes NASD's restructuring of its member regulatory pricing structure. The By-Laws, as amended, are set forth in Attachment A.

Questions concerning this Notice should be directed to NASD Finance at (240) 386-5397 or the Office of General Counsel, Regulatory Policy and Oversight, at (202) 728-8071.