Guidance

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Interpretive Letter
Interpretive Letter to Martin Miller, Esq., Willkie Farr & Gallagher

A partnership registering as a broker/dealer, which will be trading only for its own account, has no customers for purposes of Rule 2330(f).

March 15, 1999
Interpretive Letter
Interpretive Letter to Robert H. Stanley, B-Trade Services

The Firm Quote Rule (SEC Rule 11Ac1-1) requires a member firm to execute trades submitted to it by a firm that has exceeded its Super Cap status unless: (i) the firm had failed to settle on a trade the previous day, (ii) ACT has publicized that the firm has exceeded its Super Cap status and its clearing firm is not willing to honor the trade, or (iii) the firm's clearing firm has deleted the clearing relationship.

March 08, 1999
Interpretive Letter
Interpretive Letter to Jess L. Haberman, Automated Securities Clearance, Ltd.

Exemptive request denied: the OATS Rules do not provide NASD Regulation with the authority to grant exemptions from any of the OATS requirements.

March 08, 1999
Interpretive Letter
Interpretive Letter to J. Craig Long, Esq., Foley & Lardner
Rule 2220 was intended to apply only to standardized options; therefore, advertisements, educational material and sales literature regarding conventional options need not be submitted to the Department for pre-use review and approval. However, advertisements, educational material and sales literature regarding conventional options remain subject to the general standards in both Rules 2210 and 2220 that prohibit untrue, false or misleading statements.
March 05, 1999
Regulatory and Compliance Alerts (RCA)
Regulatory & Compliance Alert - Spring 1999
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March 01, 1999
Interpretive Letter
Interpretive Letter to Name Not Public

Scope of permissible functions of a Compliance Registered Operations Principal (CROP).

February 17, 1999
Interpretive Letter
Interpretive Letter to Roger D. Blanc, Esq., Willkie Farr & Gallagher

Short Sale Netting Requirements and Aggregation Units

February 08, 1999
Interpretive Letter
Interpretive Letter to W. Thomas Conner, National Association for Variable Annuities
NASD members and associated persons who are required to use hypothetical illustrations under New York State's Regulation 60 with respect to internal and external replacements of life insurance and annuity contracts, would not be prevented under NASD Rule 2210 from using such illustrations. However, any use beyond what is required by Regulation 60 may require the illustrations to be filed with NASD Regulation as sales literature.
February 05, 1999
Interpretive Letter
Interpretive Letter to Trish Stone-Damen, Investors Retirement & Management Company, Inc.
Entity should obtain a "no action" letter from the SEC before NASD Regulation will determine whether payment of non-transaction-based compensation from a member to a non-member for administrative and clerical services under a preferred alliance agreement would violate Rule 2420.
January 29, 1999
Interpretive Letter
Interpretive Letter to Karin Wolman, Esq., Wilders & Weinberg, P.C. (Research Personnel)
Factors that may determine whether research personnel are required to be registered include their communications with customers, making of recommendations, accepting or executing orders for the purchase or sale of securities, and method of compensation.
January 27, 1999
Interpretive Letter
Interpretive Letter to Jack Hodges, William O'Neil + Co, Inc.
This letter grants an exception to the OATS requirements to submit Cancel/Replace Reports and Route Reports for modifications made by a trader to orders routed to an ECN for handling/execution. Customer modifications to orders are specifically excluded from the interpretation.
January 06, 1999
Interpretive Letter
Interpretive Letter to Leslie D. Smith, Berthel Fisher & Company
IM-2420-2, the "Continuing Commissions Policy," does not apply to the receipt by a terminated broker/dealer of commissions generated by its former registered persons after they have transferred to a new firm. Rule 2420 would further apply to prohibit the receipt of the commissions by the non-member broker/dealer.
December 09, 1998
Interpretive Letter
Interpretive Letter to Leslie D. Smith, Berthel Fisher & Company
IM-2420-2, the "Continuing Commissions Policy," does not apply to the receipt by a terminated broker/dealer of commissions generated by its former registered persons after they have transferred to a new firm. Rule 2420 would further apply to prohibit the receipt of the commissions by the non-member broker/dealer.
December 09, 1998
Interpretive Letter
Interpretive Letter to Victoria Bach-Fink, Wall Street Financial Group
Broker/dealer should seek SEC interpretative advice regarding "override" payments to insurance company for securities transactions executed by registered representatives who are associated with both the broker/dealer and the insurance company.
December 07, 1998
Interpretive Letter
Interpretive Letter to Elaine S. Moshe, Gordon Altman Butowsky Weitzen

Secondary market trading in Select Sector SPDR Funds does not violate Rule 2830(c) and (g).

December 07, 1998
Regulatory and Compliance Alerts (RCA)
Regulatory & Compliance Alert - Winter 1998
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December 01, 1998
Interpretive Letter
Interpretive Letter to Jack Hodges, William O'Neil + Co, Inc.
Application of the OATS Rules to: partial executions, bunched orders, pegged orders, and negotiated orders.
October 26, 1998
Interpretive Letter
Interpretive Letter to Brian C. Underwood, A.G. Edwards & Sons, Inc.
In a request for interpretive guidance, a member asks if NASD Rules prohibit a member from paying finders or referral fees to CPAs that are not registered as associated persons.
September 16, 1998
Regulatory and Compliance Alerts (RCA)
Regulatory & Compliance Alert - Fall 1998
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September 01, 1998
Interpretive Letter
Interpretive Letter to Charles R. Hood, Instinet Corporation

NASD Rules 6950-6957 (OATS)

Clarification of application of the OATS rules.
July 30, 1998
Interpretive Letter
Interpretive Letter to Dawn Bond, FSC Securities Corporation

Application of Rule 2210 to the use of investment projections and marketing material when registered persons are conducting advisory services.

July 30, 1998
Interpretive Letter
Interpretive Letter to Name Not Public
A NASD member firm that is a proprietary trader and does not make markets is required to report orders in Nasdaq securities in compliance with OATS Rules 6951 through 6957.
July 17, 1998
Interpretive Letter
Interpretive Letter to Kenneth E. Leopold, Neuberger & Berman, LLC
What is proper evidence of compliance with clock synchronization requirements pursuant to NASD Rule 6953?
July 02, 1998
Interpretive Letter
Interpretive Letter to Daniel Schloendorn, Willkie Farr & Gallagher
Under Rule 2710, a broker/dealer may pay finder's fees to a joint venture for the referral of issuers that are potential corporate finance clients. If the joint venture is not required to be registered as a broker/dealer, such payments would not violate Rule 2420.
June 18, 1998
Interpretive Letter
Interpretive Letter to Christine A. Edwards, Morgan Stanley Dean Witter & Co.
The use of a combined name on certain public communications to reflect a recent merger of two member firms and create a single global "brand," would not violate the requirement of Rule 2210 that public communications include the name of the member firm.
June 08, 1998