For Immediate Release                                     98-61
                                
                                
 SEC APPROVES PROPOSAL BY THE NASD WHICH ELIMINATES REQUIREMENT
  THAT EMPLOYEES MUST ARBITRATE STATUTORY DISCRIMINATION CLAIMS

     Washington, D.C., June 23, 1998 -- The Securities and
Exchange Commission announced today that it approved a proposed
rule change filed by the National Association of Securities
Dealers, Inc. that would amend Rule 10201 of the NASD's Code of
Arbitration Procedure to remove the requirement that employees of
broker-dealers arbitrate statutory claims of employment
discrimination.

     The rule change will modify the current requirement that
associated persons arbitrate all disputes arising out of their
employment or termination of employment with a member broker-
dealer.  The rule change provides that associated persons are not
required, solely by virtue of their association or their
registration with the NASD, to arbitrate claims of statutory
employment discrimination.  The rule change will take effect on
January 1, 1999.

     Over the past several years, employees and civil rights
groups have raised concerns about the mandatory arbitration of
employment discrimination disputes.  After hearing from various
interest groups, both in support of and in opposition to the
proposal, the NASD filed its rule change with the Commission.
Although the rule change does not affect private agreements that
firms might enter into with their employees, notably, at least
one major broker-dealer has stated that it will not require its
employees to agree to arbitrate these types of claims.

     In announcing this rule change, Chairman Levitt said that "I
believe that this rule is a big step in a positive direction.  I
would like to commend the NASD and Frank Zarb for taking a
leadership role in addressing the concerns of employees, civil
rights groups and members of Congress in protecting the rights of
brokerage industry employees.  I know that the industry is
working hard to address this issue and I'm certain we can all
agree that the rights of securities industry employees need to be
protected.  I encourage the other SROs to promptly change their
rules to conform to those of the NASD."

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