This NASD Notice to Members addresses frequently asked questions arising under NASD Rule 3340 (Rule 3340 or the Rule) regarding trading halts. Rule 3340 prohibits members or associated persons from effecting, directly or indirectly, any transaction in a security in which a trading halt is in effect. Rule 3340 was amended in 2001 also to prohibit NASD members from publishing quotations or indications of interest in a security during a trading halt. The trading and quoting conduct prohibited by Rule 3340 is only triggered when a trading halt is in effect. To facilitate compliance with the Rule, this Notice addresses questions that have been raised with respect to the application of the Rule to particular circumstances.
Questions concerning this Notice to Members may be directed to Kathleen O’Mara, Assistant General Counsel, NASD Regulatory Policy and Oversight, at (202) 728-8071; or Afshin Atabaki, Attorney, NASD Regulatory Policy and Oversight, at (202) 728-8902.
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