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  • 83-1 Real-Time Transaction Reporting in NASDAQ NMS Securities

    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.

    Sincerely,

    Frank J. Wilson
    Executive Vice President
    Legal and Compliance

    Enclosures

    Test Series Key

    Series Number

    Examination Title

    2

    NASD Non-Member General Securities Examination

    4

    Registered Options Principal Examination

    6

    Investment Company Products/Variable Contracts Representative Examination

    7

    General Securities Representative Examination

    8

    General Securities Sales Supervisor Examination

    22

    Direct Participation Programs Representative Examination

    24

    General Securities Principal Examination

    26

    Investment Company Products/Variable Contracts Principal Examination

    39

    Direct Participation Programs Principal Examination

    52

    Municipal Securities Representative Examination