Pursuant to a request by the Securities Industry Association, the staff of the Securities and Exchange Commission extended until 60 days after NASDAQ begins full operations as a national securities exchange relief for broker-dealers trading on NASDAQ from certain aspects of Rules 17a-3 (books and records), 17a-5 (reports of income and expense), and 17a-25 (securities transaction information) under the Securities Exchange Act of 1934.

The SEC granted relief with respect to SEC Rule 17a-3 and 17a-25 if a broker-dealer trades in NASDAQ-listed securities and non-NASDAQ exchange-listed securities and incorrectly identifies (i) NASDAQ as an exchange or an over-the-counter (OTC) market, (ii) NASDAQ securities as exchange-listed securities or OTC securities (and for non-NASDAQ exchange-listed securities, the transactions as having occurred on an exchange market or an OTC market), and/or (iii) with respect to SEC Rule 17a-3 only, a broker-dealer as a member of NASDAQ or NASD.

In addition, the SEC granted relief with respect to Rule 17a-5 for non-NASDAQ exchange-listed securities if a broker-dealer incorrectly classifies securities commission revenues generated by transactions in NASDAQ-listed and non-NASDAQ exchange-listed securities on FOCUS reports submitted to the broker-dealer’s designated examining authority.