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Notice To Members 83-51

Columbus Day: Trade Date—Settlement Date Schedule

Published Date:

TO: All NASD Members and Municipal Securities Bank Dealers

FROM: All Operations Personnel

"Regular-Way" transactions made on Monday, October 10, Columbus Day and the days immediately preceding this day will be subject to the settlement date schedule listed below. The purpose of this schedule is to provide uniformity since, while the NASDAQ System and other securities markets will be open on these days, many banking institutions will be closed.

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

Trade Date

Settlement Date

Regulation T Date*

October 3

October 11

October 12
















October 10 will not be considered a business day for determining the day for settlement of a trade, the day on which stock shall be quoted ex-dividend or ex-rights, or in computing interest on bond trades. Marks to the market, reclamations, and close-outs should not be made on that day.

For purposes of Regulation T of the Federal Reserve Board, October 10 will be counted as a business day for receiving customers' payments.

The above settlement dates should be used by brokers, dealers, and municipal securities dealers for purposes of clearing and settling transactions pursuant to the Association's Uniform Practice Code and Municipal Securities Rulemaking Board Rule G-12 on Uniform Practice.

Questions regarding the application of these settlement dates to a particular situation may be directed to the Uniform Practice Department of the NASD at (212)839-6255.

* * *

* Pursuant to Section 4(c)(2) of Regulation T of the Federal Reserve Board, a broker-dealer must promptly cancel or otherwise liquidate a customer purchase transaction in a cash account if full payment is not received within seven (7) business days of the date of purchase or, pursuant to Section 4(c)(6), make application to extend the time period specified. The date by which members must take such action is shown in the column entitled "Regulation T Date."