TO: All NASD Members and Other Interested Persons

LAST DATE FOR COMMENT: SEPTEMBER 11, 1987.

EXECUTIVE SUMMARY

On October 28, 1986, President Reagan signed the Government Securities Act of 1986, providing for the regulation of government securities activities by brokers and dealers. This legislation created a new section 15C of the Securities Exchange Act of 1934, which requires SEC registration and either NASD or exchange membership for government securities brokers and dealers.

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

On Tuesday, August 18, 1987, the following 8 issues are scheduled to join the NASDAQ National Market System, bringing the total number of issues in NASDAQ/NMS to 3,018.

TO: All NASD Members and Other Interested Persons

EXECUTIVE SUMMARY

The Securities and Exchange Commission declared effective, on July 1, 1987, amendments to Section 43 of the NASD Code of Arbitration Procedure (Code) and the Board of Governors' Resolution titled "Failure to Act under Provisions of the Code of Arbitration Procedure" (Resolution).

TO: All NASD Members and Municipal Securities Bank Dealers

FROM: All Operations Personnel

Securities markets and the NASDAQ System will be closed on Monday, September 7, 1987, in observance of Labor Day. "Regular way" transactions made on the business days noted below will be subject to the following schedule.

Trade Date-Settlement Date Schedule For "Regular Way" Transactions

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

On Tuesday, September 1, 1987, the following 23 issues are scheduled to join the NASDAQ National Market System, bringing the total number of issues in NASDAQ/NMS to 3,039:

TO: All NASD Members and Other Interested Persons

BACKGROUND

The Securities and Exchange Commission (SEC) has amended its customer protection rule (Rule 15c3-3) under the Securities Exchange Act of 1934, in connection with repurchase (repo) agreements with customers when the broker-dealer retains custody of any securities subject to these agreements.

TO: All NASD Members and Other Interested Persons

The following are NASD Notices to Members issued during the fourth quarter of 1986, and the first and second quarters of 1987. Requests for copies of any notice should be accompanied by a self-addressed mailing label and directed to: NASD Administrative Services, 1735 K Street, N.W., Washington, D.C. 20006-1506

Fourth Quarter—1986

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

On Tuesday, September 15, 1987, the following 11 issues are scheduled to join the NASDAQ National Market System, bringing the total number of issues in NASDAQ/NMS to 3,046:

TO: All NASD Members and Other Interested Persons

EXECUTIVE SUMMARY

The NASD is publishing Suggested Escrow Agreement Provisions and Suggested Language for Selected Dealer Agreements to assist members and their counsel in complying with SEC Rule 15c2-4.

BACKGROUND AND SUMMARY

TO: All NASD Members and Other Interested Persons

EXECUTIVE SUMMARY

In Notice to Members 87-25, dated April 14, 1987, the NASD requested comments and suggestions on the concept of a rule that would restrict broker-dealers affiliated with issuers from making markets or trading in the securities of those issuers.

The NASD's request was the result of concerns as to whether conflicts of interest may exist or whether rule violations are more likely when broker-dealers engage in making markets or trading in securities issued by affiliates.