MTA has been informed that on February 8 the NASD submitted a rule filing with the Securities and Exchange Commission to accept the CMT 1 and 2 as an alternative to the series 86 exam required of financial analysts. (New York Stock Exchange filed their ruling on January 31.) Following is the text of a press release regarding this issue.

For instructions on how to apply for the Series 86 exemption, click here.

For Release: Wednesday, February 9, 2005

Market Technicians Association Praises Securities Regulators for Recognizing Technical Analyst Exam Program
 
CMT Exam more meaningful test for technical analysts than 86 Exam
 
Woodbridge, NJ (February 9, 2005) -- The Market Technicians Association (MTA) welcomed the decision of securities regulators to recognize the MTA’s Chartered Market Technician (CMT) examination program as an alternative to the Analysis Series 86 Examination for technical analysts. The New York Stock Exchange (NYSE) and NASD have filed changes to their respective analyst examination rules with the Securities and Exchange Commission (SEC). The changes provide that technical analysts who have passed both the CMT level 1 and 2 examinations need not take the 86 Exam. The rule changes took effect upon filing with the SEC. The rule changes do not exempt technical analysts from taking the Regulatory Series 87 Examination, which tests analysts for their understanding of strict rules that ensure analyst independence.
 
Jordan E. Kotick, CMT, President of MTA and the Global Head of Technical Analysis for Barclays Capital, praised the NYSE, NASD, and SEC for their actions. "The regulators have acted wisely to protect investors,” said Kotick. “Technical analysis is intrinsically different from fundamental analysis. The 86 Exam is an excellent exam but it tests for competence with regard to fundamental analysis. Technical analysts should have to show competence with respect to their chosen field of technical analysis. The CMT is the appropriate test for technical analysis and MTA is pleased that the regulators have recognized it,” concluded Kotick.
 
The MTA sought recognition of the CMT from the NYSE and NASD. The rule changes exempt from the 86 Exam any technical analyst who passed the more relevant CMT level 1 and 2 exam in the past, or who does so in the future. More information about the rule changes is available at:

SR-NYSE-2005-12 and Information Memo 05-09 -- available at www.nyse.com
SR-NASD-2004-159 -- available at www.nasd.com

Technical analysis differs from fundamental analysis. Fundamental analysts make judgments about the prospects for a stock after examining information about the company. Technical analysts make judgments about the prospects for a stock after examining the stock price, trading volume, and investor psychology.
 
The MTA began developing the CMT examination program in 1985.