ARM comment Re NASD Rule 3010 g 2

www.armgmnt.org via electronic mail January 6, 2004 Mr. Jonathan G. Katz Secretary United States Securities and Exchange Commission 450 Fifth Street, NW Washington, DC 20549-0609 Re: File No. SR-NASD-2003-104 Dear Mr. Katz: The Association of Registration Management (“ARM”) appreciates the opportunity to comment on proposed rule changes intended to bring about a uniform definition of “branch office” under NASD Rule 3010(g)(2). ARM applauds NASD’s efforts to formulate a uniform definition of a branch office with respect to industry rules and regulations regarding office registration and as well applauds the North American Securities Administrators Association’s efforts with respect to bringing about uniformity in this area. We are glad that NASD has eliminated the fifty-day residency rule (that would trigger the need to register a representative’s residence as a branch office); we are also mindful of the New York Stock Exchange’s insistence that this stipulation be maintained in any enacted rule. ARM, though, respectfully disagrees with the NYSE’s stance and hopes that the Exchange will follow suit and adopt the uniform definition currently proposed by NASD. We believe, along with others who have already provided commentary on this issue, that the rationale for registering residences as branch offices should be based on the types of activities conducted at locations and not on arbitrary criteria such as the number of ...