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Notice To Members 83-1

Real-Time Transaction Reporting in NASDAQ NMS Securities updated

Published Date:

TO: All NASD Members

ATTENTION: Trading Departments
Branch Office Trading Locations

On April 1, 1982, the NASD announced the commencement of real-time transaction reporting under Schedule D of the Association's By-Laws for certain NASDAQ securities that have been designated National Market System (NMS) securities. Since inception, the Association has been monitoring transaction reporting in this new environment through the NASDAQ System as well as during special on-site inspections of all market makers in NASDAQ NMS securities for the purpose of determining member experiences with NMS trade reporting requirements and to provide ongoing education and guidance to affected members.

The new reporting rules have significantly expanded transaction and price information available to members, issuers and public investors in NASDAQ NMS securities. Therefore, members are required to have in place effective internal procedures and systems to satisfy their obligations under these new rules. For this reason, the Association has over the past several months endeavored to facilitate the transition to real-time trade reporting by providing members with comprehensive and detailed information concerning the reporting rules through notices to members, educational materials and instructional conferences held in major cities throughout the country earlier this year.

All of the above efforts have been undertaken to assure that transactions in the NASDAQ NMS securities are being reported properly and that price and volume information being disseminated to the investing public via the newswires and newspapers is timely and accessible. As part of this continuing effort, the Association is again publishing a NASDAQ NMS summary of the Trade Reporting Rule under Schedule D of the Association's By-Laws (Exhibit I). This summary contains information concerning when to report, who is obligated to report, the prices at which transactions are to be reported, the circumstances under which NASDAQ NMS trades may be aggregated or "bunched" and the circumstances under which members may be exempt from trade reporting. The summary should be provided to all personnel having responsibility to report transactions in NASDAQ NMS securities and should be utilized as a guide to the key provisions of the rules. Also enclosed for reference purposes is a copy of the reporting rule itself (Exhibit II). Association examiners will continue to review for compliance with all aspects of Schedule D during regular and special on-site examinations of members conducting a business in NASDAQ/NMS securities.

Should you have questions regarding this notice, the requirements of Schedule D or should additional copies of this notice be needed, please contact Leon Bastien at (202) 728-8202.


Frank J. Wilson
Executive Vice President
Legal and Compliance


Test Series Key

Series Number

Examination Title


NASD Non-Member General Securities Examination


Registered Options Principal Examination


Investment Company Products/Variable Contracts Representative Examination


General Securities Representative Examination


General Securities Sales Supervisor Examination


Direct Participation Programs Representative Examination


General Securities Principal Examination


Investment Company Products/Variable Contracts Principal Examination


Direct Participation Programs Principal Examination


Municipal Securities Representative Examination