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92-9 NASD/NYSE Special Alert Regarding Previously Cancelled Securities


Senior Management
Legal & Compliance
*These are suggested departments only. Others may be appropriate for your firm.

The Securities and Exchange Commission recently advised the New York Stock Exchange, Inc. (NYSE) and the National Association of Securities Dealers, Inc. (NASD) that a potentially large number of cancelled registered corporate bond certificates, which had been earmarked for destruction, are now reappearing in circulation. A number of these cancelled certificates are perforated, and some have been presented in recent days for sale and/or transfer, mainly by foreign customers.

Broker/dealers are advised to take whatever precautions necessary to protect themselves from possible loss, including examination of certificates for indication of cancellation and verification of certificate numbers with transfer agents and the Securities Information Center. The Depository Trust Company had previously issued three Important Notices, B#10, 271-91, dated November 22, 1991; B#10, 531-91, dated December 6, 1991; and B#11, 199-91, dated December 23, 1991, regarding this matter.

Members designated to the NASD who have questions concerning this Notice can call their local NASD district office. NYSE-designated members should call their Finance Coordinator at the NYSE.

John E. Pinto
Executive Vice President
National Association of Securities Dealers, Inc.

Edward A. Kwalwasser
Executive Vice President
New York Stock Exchange, Inc.

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