Amendments to NASD Rule 3370, Affirmative Determination Requirements

NASD Regulation, Inc., has filed with the SEC a proposed rule change to amend NASD Rule 3370(b)(2)(A) and the corresponding recordkeeping requirements under Rule 3370(b)(4)(B) (the "Affirmative Determination Requirements”) to require that, prior to accepting a short sale order from a broker/dealer that is not an NASD member ("non-member broker/dealer”), a member must make an affirmative determination that the member will receive delivery of the security from the non-member broker/dealer or that the member can borrow the security on behalf of the non-member broker/dealer for delivery by the settlement date.

TitleFormat - SizeStatus
Text of Proposed Rule ChangePDF - 30.59 KB
Federal Register NoticePDF - 43.17 KB
Amendment No. 1 to Proposed Rule ChangePDF - 10.68 KB
Amendment No. 2 to Proposed Rule ChangePDF - 6.69 KB
Approval OrderPDF - 44.29 KB