Certain activities of unregistered persons would not be permissible under <i>Notice to Members 88-50</i>.<br/>
<p>Application of NASD Rules to Member Firms using Pink Sheets Linkage.</p>
Registration Requirements for Various Teleservicing Activities
Activities requiring registration as an Equity Trader.<br/>
<p>Application of NASD Rules 3370(b)(1) and 3370(b)(2)(A) to orders received by a Nasdaq market maker from other registered broker/dealers.</p>
Establishing "firewalls" that prevent the execution of short sales in securities not on a member's "Easy to Borrow" list would be consistent with Rule 3370(b). A member that only conducts a review after a short sale order has been executed to ensure that the security is on the "Easy to Borrow" list would not be in compliance with Rule 3370(b).
NASD Regulation Department of Enforcement will not, unless directed otherwise, institute enforcement action against NASD member firms that send group e-mails to two or more existing or prospective customers that qualify as "institutional accounts" under Rule 3110(c)(4) or existing customers that qualify as "qualified purchasers" under Section 3(c)(7) of the Investment Company Act of 1940 without securing prior approval by a registered principal of those communications, subject to the condition that the firms supervise and review the group e-mails in accordance with the standards of Rule 3010(d).
Advertising Department's response to recommendations of the Investment Company Institute concerning member use of hyperlinks.
The use of a member name without the corporate modifier “L.L.C.” on certain materials adequately denotes the name of the member and would not violate the requirement of NASD Rule 2210 (f)(2) to include a member name.
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.
