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steps, if performed with integrity, represent significant changes in the NASD's self-regulatory process. |
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More NASD affirmative action includes a 7 percent increase in NASDR staff for enforcement, examination, and market regulation programs. NASDR has initiated measures to enhance the enforcement of the trade reporting, firm quote, customer limit order handling, and other market-making rules, and has begun the development of an enhanced audit trail. The NASDR has also changed its disciplinary processes to include hearing officers and added procedures aimed at achieving greater efficiency and fairness. The NASD still doesn't have a bill of rights, but the revolution is still in its infancy. |
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The NASD also promised to enhance its systems for trading and market surveillance, including compliance with late trade reporting and various other NASD trading rules. The NASD has created two new offices, the Office of Individual Investor Services and the Office of the Ombudsman, to more fully serve the interest of investors and other NASD constituents. |
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The board of governors of the NASD and the board of directors of the NASDR have authorized $25 million and have committed to expend an additional $75 million over the next 5 years to enhance its legacy computer systems. Of course, the NASD giveth and the NASD taketh away, because the respective boards reserve the right to renegotiate with the SEC if the $100 million expenditure is not achievable or feasible. The world will be watching to see if "renege" is the only part of renegotiate that the NASD implements. Remember that you heard it from me first. |
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As discussed above, the SEC's new Order Handling Rules became effective on January 20, 1997. The Order Handling Rules represented constructive change for the better and ushered sweeping changes in the operations and accountability of the brokerage industry and heralded the new frontier of trading. Most significantly, there is nothing in the SEC's view which limits the new Order Handling Rules only to Nasdaq, and they aren't. There is no logical reason why the specialist |
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