I M P O R T A N T

Officers * Partners * Proprietors

TO; All NASD Members

As discussed in Notice to Members 83-73, the Securities & Exchange Commission adopted Rule 15c2-2 on November 18, 1983. The Rule prohibits broker-dealers from using mandatory arbitration clauses in customer agreements that purport to bind public customers to the arbitration of claims arising under the federal securities laws. Those clauses, in the view of the Commission, are inconsistent with the deceptive practice prohibitions of Section 10(b) and Section 15(c) of the Act.

TO: All NASD Members

The SEC Release of December 18, 1984

On December 18, 1984, the Securities and Exchange Commission issued Release No. 34-21583; File No. S7-787, entitled "Designation of National Market System Securities." This Release confirms the decision taken by the Commission at an open meeting on November 16, to approve the following additional criteria for the voluntary inclusion of securities in NASDAQ/NMS:

TO: All NASD Members and Other Interested Persons

ATTN: Syndicate Department

TO: All NASD Members and Municipal Securities Bank Dealers

ATTN: All Operations Personnel

The schedule of trade dates/settlement dates below reflect the observance by the financial community of Martin Luther King, Jr.'s Day, Monday, January 21, 1985. On Monday, January 21, 1985, the NASDAQ System and the exchange markets will be open for trading. However, it will not be a settlement date since many of the nation's banking institutions will be closed in observance of Martin Luther King, Jr.'s Day.

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

On Tuesday, January 22, 1985, 100 issues are scheduled to join the NASDAQ National Market System bringing the total number of issues in NASDAQ/NMS to 1,276. These 100 issues, which will begin trading under real-time trade reporting, are entering the NASDAQ/NMS pursuant to the Securities and Exchange Commission's criteria for voluntary designation. Changes in the voluntary criteria were recently approved by the SEC in November, 1984 and will become effective January 22, 1985.

IMPORTANT

OFFICERS, PARTNERS AND PROPRIETORS

TO: All NASD Members and Other Interested Persons

LAST VOTING DATE IS FEBRUARY 14, 1985

Members of the National Association of Securities Dealers, Inc. ("NASD" or "Association") are invited to vote on certain amendments to the Association's By-Laws contained in Exhibit A to this Notice for Members. In addition, amendments to the Association's Code of Procedure related to the proposed By-Law amendments are being published for comment.

TO: All NASD Members and Other Interested Persons

Following is a list of NASD Notices to Members issued during the fourth quarter of 1984. Requests for copies of any notice should be accompanied by a self-addressed label and may be directed to: NASD Administrative Services, 1735 K Street, N.W., Washington, D. C. 20006.

IMPORTANT

PLEASE DIRECT THIS NOTICE TO ALL FINANCIAL AND OPERATIONAL OFFICERS AND PARTNERS

TO: All NASD Members and Other Interested Persons

Since the issuance of Notice to Members 84-48, requests for clarification have been received concerning that portion of the Notice dealing with the treatment to be accorded commissions payable.

After further discussion with the staff of the SEC's Division of Market Regulation, the following explanation sets forth the proper method for the handling of commissions payable pursuant to SEC Rule 15c3-l:

TO: All NASD Members and Other Interested Persons

ATTN: Corporate Financing Department

TO: NASD Members and NASDAQ Issuers