Notice to Members 97-67

NASD Regulation Institutes Firm Quote Compliance

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.  

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11/29/2015Notice to Members 97-67 - 97-67 Attachments (PDF Format)PDF - 318.92 KB