Notice to Members 98-17
SEC Approves New NASD Qualification Requirements and Examination for Equity Traders (Series 55)
The Securities and Exchange Commission (SEC) recently approved amendments to the National Association of Securities Dealers, Inc. (NASD®) Registration Rules regulating qualifications of representatives who trade equity securities in The Nasdaq Stock MarketSM (Nasdaq®) and/or over-the-counter. The new rule language is included at the end of this Notice. As of April 1, 1998, the effective date of the rule, such traders will be required to pass the new Limited Representative—Equity Trader Examination (Series 55). This is an “add on” exam, and Equity Traders must also pass or have passed either the General Securities Registered Representative Examination (Series 7) or the Corporate Securities Limited Representative Examination (Series 62). Registered persons who currently are functioning as Equity Traders have a two-year grace period within which to pass the examination, provided the member firm with which they are associated applies for Equity Trader registration within 30 days of the effective date of the rule. There is no “grandfather” provision for this new qualification requirement.