The Securities and Exchange Commission has approved amendments to NASD Rule 1180(i) allowing the use of the Depository Trust Company (DTC) SMART/Track for Corporate Action Liability Notification Service (Smart Track).

Under Rule 1180(i) in the case of a failed contract in a security subject to a voluntary corporate action, such as a tender or exchange offer, the owed party must give notice to the owing party that it will be held liable for the damages if the security is not delivered in time for the owed party to participate in the offer. Industry practice had been to give such notice by fax. This will continue to be the case where either or both of the parties are not members of DTC or National Securities Clearing Corporation. Otherwise, notice may now be given by use of SMART/Track.

http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-25179.pdf