Regulatory Notice 09-14

SEC Approves Alternative Means for Calculating the Minimum Price-Improvement Obligations Under Certain Circumstances

Effective Date: February 11, 2009

Effective February 11, 2009, firms are permitted to use an alternative method for calculating the minimum price improvement obligation under NASD IM-2110-2 (Trading Ahead of Limit Orders) in cases where the firm receives a customer limit order in an OTC equity security that is priced below $1.00 and where there is no current published inside spread in that security.

The text of the amendments can be found at

Questions regarding this Notice should be directed to Racquel Russell, Assistant General Counsel, Office of General Counsel, at (202) 728-8363.