Rules governing lending arrangements of funds between registered persons of dealers and customers have been promulgated at the national level by the NASD. The rule proposed by the Office is based on the amended NASD Rule 2370, which has been approved by the Securities and Exchange Commission. This rule amendment exempts some lending arrangements involving a registered person of a broker dealer and a customer from being a prohibited business practice. The rule is also being amended to reflect that a violation of Regulation SHO, as adopted by the SEC under the Securities and Exchange Act of 1934, is a prohibited business practice.