Notice to Members 96-36

SEC Approves Amendment to the Primary Market-Maker Standards

On May 9, 1996, the Securities and Exchange Commission (SEC) approved an amendment to NASD Rule 4612 (formerly Section 49 of the NASD Rules of Fair Practice), the NASD's Primary Market-Maker (PMM) Standards Rule. The approved amendment deletes a provision from Rule 4612 that allows a market maker to qualify as a PMM in a security by registering in the issue and refraining from quoting the security for five days. The Rule change is effective immediately.

Questions regarding this Notice should be directed to Nasdaq Market Operations, at (800) 540-4818, or Thomas R. Gira, Associate General Counsel, at (202) 728-8957.