Notice to Members 00-10

Nasdaq Reiterates Clearly Erroneous Complaint Procedures

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.