Notice to Members 97-34

Depository Trust Company to Launch Initial Public Offering Tracking System

On June 2, 1997, The Depository Trust Company (DTC) will launch its Initial Public Offering (IPO) Tracking System. Starting June 2, managing underwriters should be aware that for securities to be eligi ble for listing on The Nasdaq Stock Market, Inc. , they must be “depository eligible” under NASD® Rules 4310(c)(23) and 11310(d). Managing underwriters will no longer be able to delay designating a security as depository eligible after it begins trading after an IPO in the immediate secondary market. Transactions will be required to settle by book-entry rather than by physical delivery.