NASD Notice to Members 00-10 - February 2000

Nasdaq Reiterates Clearly Erroneous Complaint Procedures

Executive Summary

The purpose of this Notice is to reiterate the procedures for filing complaints under the National Association of Securities Dealers, Inc. (NASD®) Rule 11890 – the Clearly Erroneous Transaction Rule. NASD Rule 11890 (the Rule) establishes the process for The Nasdaq Stock Market, Inc. to review certain transactions in Nasdaq® securities and declare them null and void or otherwise modify their terms.

When filing an erroneous complaint, a member should file the complaint within a specified time period and should provide the following information about the transactions in question:

  • name of security
  • number of shares
  • price
  • contra broker, and
  • the executing Nasdaq system

Questions regarding this Notice should be addressed to Dan Franks, Senior Vice President, Nasdaq Market Operations, at (203) 385-6250; or John Malitzis, Assistant General Counsel, Office of General Counsel, The Nasdaq Stock Market®, at (202) 728-8245.