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To: JCinTC who wrote (4196)	7/26/1998 1:04:00 PM
From: Arcane Lore	Read Replies (1) \| Respond to of 9440

Arcane, Is the sec still in the comment period on this proposed rule & do you know what determines how long a co has to comply? JC Somewhat to my surprise, it appears possible that the proposed rule has not yet entered the SEC comment period. Specifically, I was unable to find a Federal Register notice asking for comments on the proposed rule. I believe such requests are usually published within one or two months after the proposal of the new rule by the SRO (in this case NASD approved the proposed rule on May 7, 1998). It's possible (maybe even likely) that I simply did an inadequate search, so if anyone else would like to try to find it, here is a site for searching the Federal Register: access.gpo.gov How long does the process take? As you may know, the eligibility rules for NASDAQ National Market and Small Cap listings have changed in the relatively recent past. The SEC approval process for that change may provide the basis for an educated guess as to how long the current change will require. In the case of these changes in listing listing criteria the chronology can be found by going to the Federal Register site listed above and searching the 1997 Federal Register for the string "national association of securities dealers" (including the double quotes) with the 'from' and 'to' dates both set to 08/29/97 The sequence of events was: Submission of proposed rule changes to SEC by NASD: March 3, 1997 Announcment of proposal/request for comments in Fed. Register: April 9, 1997 (Formal SEC release was one week earlier: April 2, 1997) Approval by SEC of proposed rule: August 22, 1997 (published in Federal Register one week later: August 29, 1997) The proposed rule was amended by NASD three times during the process and there were eight comment letters. From submission by NASD to approval by SEC, the process took about five and a half months. The period from publication in the Federal Register to SEC approval was about four and a half months. If the proposed OTC BB rule follows the same timetable, we're looking at SEC approval in fourth quarter of this year. It is likely there may be more comments concerning the BB proposal than the earlier NMS/Small Cap proposal since many more companies will be affected (estimates of the number of National Market/Small Cap companies affected were on the order of 400 to 600). When the BB proposal was in the NASD review stage it elicited more than 60 comment letters per nasdaqnews.com. However, I suspect delays caused by a greater number of comment letters compared with the earlier proposal will be minimal. What happens after approval? I suspect the NASD statement that companies will have six to twelve months following approval to become compliant is based on the timetable for the corresponding National Market/Small Cap process. In that case, the rule took effect six months after its approval on Feb. 23, 1998. However, companies were given 90 days after that to bring their companies in line with the new standards and there also was an appeals process (See: amcity.com or amcity.com ).