NASD TAKES DISCIPLINARY ACTION AGAINST EX-TRADER
The <National Association of
Securities Dealers Inc> said it has taken disciplinary action
against Mark Woltz, a former trader of a major firm, suspending
him from association with any NASD member for 20 business days,
fining him 5,000 dlrs and censuring him.
    NASD did not immediately identify Woltz' former employer.
    The NASD said the disciplinary action was instituted by its
Market Surveillance Committee for alleged violations of
anti-fraud provisions under its Rules of Fair Practice.
    The association said Woltz consented to the sanctions
without admitting or denying allegations and the suspension
will start April 27 and run through May 22.
    It said its complaint alleges that from March 25, 1985 to
April 4, 1985 Woltz engaged in a manipulative and deceptive
practice known as marking the close of the market in a NASDAQ
security. The NASD did not identify the security.
    The NASD said the complaint alleges that Woltz, while his
firm owned a long inventory position in the security, caused
the firm's quotations of the security to rise on five days
within five minutes of the market close, causing the firm's bid
price to be the exclusive high bid at the market close on four
days and the shared high bid on the other day.
    It said the complaint alleges that before the market opened
on each of the following business days, Woltz caused the firm's
quotation to fall below its closing bid of the prior day.  At
no time did the firm execute transactions at the
artificially-raised prices, the NASD said.
    The NASD said the complain also alleges that Woltz violated
Article III, Sections 1, 5 and 18 of the Rules of Fair Practice.
 Reuter
