Notice to Members 07-09

SEC Approves Amendments to NASD Rules to Modify and Expand NASD's Authority to Initiate Trading and Quotation Halts in Over-the-Counter (OTC) Equity Securities;

Effective Date: March 16, 2007

Executive Summary

On December 18, 2006, the Securities and Exchange Commission (SEC) approved amendments to NASD Rule 6660 to expand the scope of NASD’s authority to initiate trading and quotation halts in OTC Equity Securities and new IM-6660-1 to identify certain factors that NASD may consider in determining, at its discretion, whether imposing a trading and quotation halt in an OTC Equity Security is appropriate.1 Rule 6660 and IM-6660-1, as approved, are set forth in Attachment A of this Notice. The amendments will become effective on March 16, 2007.

Questions or comments regarding this Notice may be directed to Elliot Levine, Chief Counsel, Transparency Services, at (202) 728-8405; or Kosha K. Dalal, Associate General Counsel, Office of General Counsel (OGC), at (202) 728-6903.

1 See Exchange Act Release No. 54952 (December 18, 2006), 71 FR 78242 (December 28, 2006) (File No. SR-NASD-2006-039).