7001B. Securities Transaction Credit

This rule is no longer applicable. NASD Rule 7001B has been superseded by FINRA Rule 7610A. Please consult the appropriate FINRA Rule.

NASD members that trade securities listed on the NYSE ("Tape A"), Amex and regional exchanges ("Tape B"), or Nasdaq ("Tape C") in over-the-counter transactions reported to the NASD/Nasdaq Trade Reporting Facility may receive from the NASD/Nasdaq Trade Reporting Facility transaction credits based on the transactions attributed to them. A transaction is attributed to a member if the member is identified as the executing party in a trade report submitted to the NASD/Nasdaq Trade Reporting Facility that the NASD/Nasdaq Trade Reporting Facility submits to the Consolidated Tape Association or the Nasdaq Securities Information Processor. An NASD member may earn credits from any of three pools maintained by the NASD/Nasdaq Trade Reporting Facility, each of which represents the revenue paid by the Consolidated Tape Association or the Nasdaq Securities Information Processor with respect to the NASD/Nasdaq Trade Reporting Facility for each of Tape A, Tape B, and Tape C transactions. An NASD member may earn credits from the pools according to the pro rata share of revenue attributable to over-the-counter transactions reported to the NASD/Nasdaq Trade Reporting Facility by the member in each of Tape A, Tape B, and Tape C for each calendar quarter. Credits will be paid on a quarterly basis. The percentage of attributable revenue shared with a particular member will be determined as follows:
Tape A
Percentage Market Share Percent of attributable revenue shared
Greater than or equal to 0.25% 100%
Less than 0.25% but greater than or equal to 0.15% 80%
Less than 0.15% but greater than or equal to 0.10% 50%
Less than 0.10% 0%
Tape B
Percentage Market Share Percent of attributable revenue shared
Greater than or equal to 0.50% 100%
Less than 0.50% but greater than or equal to 0.25% 80%
Less than 0.25% but greater than or equal to 0.10% 50%
Less than 0.10% 0%
Tape C
Percentage Market Share Percent of attributable revenue shared
Greater than or equal to 0.75% 100%
Less than 0.75% but greater than or equal to 0.25% 80%
Less than 0.25% but greater than or equal to 0.10% 50%
Less than 0.10% 0%
For purposes of this Rule, "Market Share" means a percentage calculated by dividing the total number of shares represented by trades reported by an NASD member to the NASD/Nasdaq TRF during a given calendar quarter by the total number of shares represented by all trades reported to the Consolidated Tape Association or the Nasdaq Securities Information Processor, as applicable, during that quarter. Market Share is calculated separately for each tape.
Amended by SR-FINRA-2007-041 eff. Jan. 1, 2008.
Amended by SR-NASD-2007-051 eff. Aug. 1, 2007.
Adopted by SR-NASD-2006-090 eff. Aug. 1, 2006.

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