Notice to Members 05-02

Stage Two of the Expansion of Dissemination of TRACE Transaction Data to Begin on February 7, 2005 Instead of February 1, 2005

NASD is implementing recent amendments to Rule 6250 requiring the immediate or delayed dissemination of information on Trade Reporting and Compliance Engine (TRACE) transactions in two stages (hereinafter, Stage One and Stage Two). The amendments were approved by the Securities and Exchange Commission (SEC) on September 3, 2004 and are described in detail in SR-NASD-2004-094 and NASD Notice to Members 04-65(September 2004). The implementation date of Stage One was October 1, 2004. The implementation date of Stage Two, consisting of certain Rule 6250amendments more fully described below, has been changed from February 1, 2005 to February 7, 2005.

Questions concerning this Notice should be directed to TRACE feedback; Elliot Levine, Chief Counsel, Market Operations, Markets, Services and Information, at (202) 728-8405; or Sharon K. Zackula, Associate General Counsel, Office of General Counsel, Regulatory Policy and Oversight, at (202) 728-8985.