The National Association of Securities Dealers has proposed changes to NASD Rules 6951 and 6954 to require members who transmit an intermarket sweep order (ISO) to another member, electronic communications network, non-member or exchange to record and report to NASD that such order was an ISO. Members will be required to include this information in their Route Reports submitted to NASD pursuant to the NASD’s Order Audit Trail System (OATS) rules. The effective date for the new rules is scheduled for February 4, 2008, to coincide with the effective date of other amendments to the OATS rules previously approved by the Securities and Exchange Commission. However, NASD intends to make the ISO routing method code available for use on Route Reports beginning June 11, 2007 and encourages members to begin using the code as soon as possible.

The comment period for this proposal closes June 21.