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89-66 Size of "Normal" Unit of Trading For NASDAQ-Listed Debentures

SUGGESTED ROUTING*

Senior Management
Legal & Compliance
Systems
Trading

*These are suggested departments only. Others may be appropriate for your firm.

The NASD Trading Committee, after a recent study, decided that a $10,000 principal amount should continue to be considered the "normal" unit of trading for NASDAQ-listed convertible debentures.

The decision, confirming a ruling in an NASD letter sent to members July 18, 1972, means that a NASDAQ-registered market maker is expected to trade at least one such unit at its quotation appearing on NASDAQ terminals at the time it receives either a buy or sell order.

The committee based its new decision on statistics showing that 95 of the 110 convertible debentures listed on NASDAQ had a minimum of $20 million of bonds each outstanding and that the debentures were generally available for borrowing purposes. In addition, committee members said their bond traders regarded the $10,000 principal as a reasonable, accepted standard for a unit of trading.

Questions concerning this notice can be directed to Glen R. Shipway, Senior Vice President, Market Operations, at (212) 858-4448


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