No Action Letter Issued by Securities Exchange Commission
dated January 6, 2005 to operate Track ECN through October
Robert P. Bramnik
227 West Monroe St.
Chicago, IL 60606
Re: Track System
This letter extends the temporary no-action position originally taken by the Division of Market
Regulation ("Division") on January 7, 2002 until October 6, 2005. This letter also extends the no-action position
taken by the Division on May 30, 2003, relating to exchange-listed securities. In the January 7th and May30th
letters, you confirmed the Track ECN ("Track System" or "System") operated by Track Data Securities Corp.
("Track") is an "electronic communications network" ("ECN") as defined in the amendments to the Quote Rule
and the Limit Order Display Rule (Collectively, "Order Execution Rules"). You also confirmed that the Track
System would be in compliance with the requirements of Rule 11Ac1-1(c)(5)(ii) of the Exchange Act ("ECN
Display Alternative") with respect to any Nasdaq and exchange-listed securities for which a linkage between the
Track System and the self-regulatory organization ("SRO") is operational. In the January 7th and May 30th
letters, the Division took the position that it would not recommend that the Commission take enforcement action
against any OTC market maker or exchange market maker as defined in the Order Execution Rules, for entry of
orders into the Track System without modifying their public quotations in compliance with the ECN Amendment.
The Division continues to condition its position on compliance with the terms expressed in the January
7th and May 30th letters. These terms include, but are not limited to, compliance with the requirement that the
Track System respond to orders entered into the Track System through access to the SRO no slower than the
Track System responds to orders entered directly into the System, and in any event in no more than a few
The Division furthe