Placing limit orders in ECNs that comply with the ECN Display Alternative under the SEC's Order Handling Rules in order to affect the price of transactions effected through POSIT may constitute market manipulation in violation of the antifraud provisions of the securities laws and NASD rules.
NASD Rule 3220 does not require adjustment of an open limit order to sell in the event of a stock split.
<p>Applicability of Rule 3230(a) to secondary or sub-clearing arrangements with foreign securities firms.<br/><br/></p>
<p>Applicability of Rule 3230 to a three-party clearing agreement.</p>
<p>Short Sale Netting Requirements and Aggregation Units<br />
</p>
<p>Short sales by options professionals established during the course of bona fide market making activities are exempt from the affirmative determination requirements, regardless of whether the short sales constitute a permitted offset under Regulation T.<br />
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Affirmative determination for short sales under NASD Rule 3370.<br/>
<p>NASD members must make an affirmative determination for all short sales prior to executing the sale (absent an exemption), including short positions not carried overnight.</p>
<p>Adequate documentation of reasonable efforts to borrow, standing alone, would not constitute a circumstance sufficient to mitigate the inability to deliver securities on settlement date where a member has relied upon an "Easy to Borrow" or "Hard to Borrow" list.<br />
</p>
Unless otherwise indicated, suspensions will begin with the opening of business on Monday, June 17, 1996. The information relating to matters contained in this section is current as of June 5, 1996. Information received subsequent to June 5, 1996, is not reflected in this section.
Firm Fined, Individual Sanctioned
Litwin Securities, Inc. (Miami Beach, Florida) and Harold A. Litwin (Registered
