IMPORTANT MAIL VOTE

OFFICERS, PARTNERS AND PROPRIETORS

TO: All NASD Members

LAST VOTING DATE IS NOVEMBER 3, 1986.

EXECUTIVE SUMMARY

NASD members are invited to vote on a proposed amendment to the NASD Rules of Fair Practice that would require advertising and sales literature for publicly offered direct participation programs to be filed with the NASD's Advertising Department. The NASD will review the material for conformance with the guidelines contained in Article III, Section 35 of the Rules of Fair Practice.

TO: All NASD Members and Other Interested Persons

EXECUTIVE SUMMARY

The Securities and Exchange Commission recently approved amendments to the Board of Governors' Interpretation on Prompt Receipt and Delivery of Securities and Article III, Section 21 of the NASD Rules of Fair Practice (SEC Release No. 34-23572). The amendments, which will become effective on October 15, 1986, provide for additional regulation of short selling in the over-the-counter market. The text of the amendments is attached.

ACCEPTING ORDERS

TO: All NASD Members and Level 2 and Level 3 Subscribers

On Tuesday, October 21, 1986, 12 issues are scheduled to join the NASDAQ National Market System, bringing the total number of issues in NASDAQ/NMS to 2,602. These 12 issues, which will begin trading under real-time trade reporting, are entering NASDAQ/NMS pursuant to the Securities and Exchange Commission's criteria for voluntary designation.

The 12 issues scheduled to join NASDAQ/NMS on Tuesday, October 21, 1986, are:

TO: All NASD Members and Municipal Securities Bank Dealers

ATTN: All Operations Personnel

TO: All NASD Members

ATTN: Operations Officer, Cashier, Fail-Control Department

On October 14, 1986, the United States District Court for the Eastern District of New York, appointed a SIPC Trustee for the above-captioned firm.

Members may use the "immediate close-out" procedures as provided in Section 59(i)(2) of the NASD's Uniform Practice Code to close out open OTC contracts. Also, MSRB Rule G-12(h)(iii) provides that members may use the above procedures to close out transactions in municipal securities.

TO: All NASD Members and Other Interested Persons

EXECUTIVE SUMMARY

Effective with the SEC's approval on September 25, 1986, an amendment to the NASD Board of Governors' Free-Riding Interpretation provides limited exemption for certain persons purchasing "hot issue" securities in connection with the conversion to stock ownership of mutual savings and loan associations, savings banks and certain other organizations.

BACKGROUND

IMPORTANT MAIL VOTE

OFFICERS, PARTNERS AND PROPRIETORS

TO: All NASD Members

LAST VOTING DATE IS NOVEMBER 28, 1986.

••• Executive Summary

NASD members are invited to vote on the following amendments to the NASD Rules of Fair Practice and the NASD By-Laws:

TO: All NASD Members and Level 2 and Level 3 Subscribers

On Tuesday, November 4, 1986, 25 issues are scheduled to join the NASDAQ National Market System, bringing the total number of issues in NASDAQ/NMS to 2,630. These 25 issues, which will begin trading under real-time trade reporting, are entering NASDAQ/NMS pursuant to the Securities and Exchange Commission's criteria for voluntary designation.

The 25 issues scheduled to join NASDAQ/NMS on Tuesday, November 4, 1986, are:

TO: All NASD Members and Other Interested Persons

EXECUTIVE SUMMARY

The Congress has recently enacted legislation providing sanctions against certain transactions with South Africa or South African entities. This notice provides information relating to certain provisions of that Act which may relate to the business of NASD members.

TO: All NASD Members

ATTN: Operations Officer, Cashier, Fail-Control Department

On November 5, 1986, the United States District Court for the Eastern District of New York, appointed the Securities Investor Protection Corporation (SIPC) Trustee for the above-captioned firm.

Members may use the "immediate close-out" procedures as provided in Section 59(i)(2) of the NASD's Uniform Practice Code to close out open OTC contracts. Also, MSRB Rule G-12(h)(iii) provides that members may use the above procedures to close out transactions in municipal securities.