The Securities and Exchange Commission has approved a proposed rule change amending NASD Interpretive Material (IM) 2110-2 (Trading Ahead of Customer Limit Order) with respect to the determination of the minimum price improvement obligation in an over-the-counter equity security priced below $1.00 where there is no published current inside spread or there is only a one-sided quote. The amended IM-2110-2 provides that where there is no published current inside spread, member firms may calculate a current inside spread by contacting and obtaining priced quotations from at least two unaffiliated dealers, and the highest bid and lowest offer obtained must be used as the basis for calculating the current inside spread for purposes of determining the member’s minimum price improvement obligation. Members must document (i) the name of each dealer contacted, and (ii) the quotations received that were used as the basis for determining the current inside spread.