Special NASD Notice to Members 97-67 - October 1997

NASD Regulation Institutes Firm Quote Compliance

Executive Summary

To ensure that members fully comply with Securities and Exchange Commission (SEC) Rule 11Ac1-1 (Rule 11Ac1-1 or the firm quote rule), NASD Regulation, Inc., has developed an automated surveillance system (the Firm Quote Compliance System or QCS) to permit the resolution of backing-away complaints on a real-time basis.  FQCS will also, in the absence of complaints, identify firms that demonstrate a pattern of non-response to SelectNetSM liability orders. By utilizing the Firm Quote Compliance System, NASD RegulationSM is able to address backing-away complaints on a real-time basis with the intent of resolving such complaints with a contemporaneous trade execution, if warranted, and will look, on a historical basis, for patterns of behavior indicative of potential violations of Rule 11Ac1-1.  
View Full Notice PDF 319 KB
View Full Notice PDF 13 KB

The views, expressions, findings and opinions expressed in the comments on this Web page are solely those of the author(s) and FINRA accepts no responsibility for the content of the comments.

Comments By Date Received