(a) No member or person associated with a member shall:
(1) coordinate the prices (including quotations), trades or trade reports of such member with any other member or person associated with a member, or any other person;
(2) direct or request another member to alter a price (including a quotation); or
(3) engage, directly or indirectly, in any conduct that threatens, harasses, coerces, intimidates or otherwise attempts improperly to influence another member, a person associated with a member, or any other person.
This includes, but is not limited to, any attempt to influence another member or person associated with a member to adjust or maintain a price or quotation, whether displayed on any facility operated by FINRA or otherwise, or refusals to trade or other conduct that retaliates against or discourages the competitive activities of another market maker or market participant.
(b) Provided that the conduct in subparagraphs (1) through (7) below is otherwise in compliance with all applicable law, nothing in this Rule respecting coordination of quotes, trades or trade reports shall be deemed to limit, constrain or otherwise inhibit the freedom of a member or person associated with a member to:
(1) set unilaterally its own bid or ask in any security, the prices at which it is willing to buy or sell any security, and the quantity of shares of any security that it is willing to buy or sell;
(2) set unilaterally its own dealer spread, quote increment or quantity of shares for its quotations (or set any relationship between or among its dealer spread, inside spread, or the size of any quote increment) in any security;
(3) communicate its own bid or ask, or the prices at or the quantity of shares in which it is willing to buy or sell any security to any person, for the purpose of exploring the possibility of a purchase or sale of that security, and to negotiate for or agree to such purchase or sale;
(4) communicate its own bid or ask, or the price at or the quantity of shares in which it is willing to buy or sell any security, to any person for the purpose of retaining such person as an agent or subagent for the member or for a customer of the member (or for the purpose of seeking to be retained as an agent or subagent), and to negotiate for or agree to such purchase or sale;
(5) engage in any underwriting (or any syndicate for the underwriting) of securities to the extent permitted by the federal securities laws;
(6) take any unilateral action or make any unilateral decision regarding the market makers with which it will trade and the terms on which it will trade unless such action is prohibited by paragraph (a) of this Rule; and
(7) deliver an order to another member for handling.
|Amended by SR-FINRA-2008-061 eff. June 15, 2009.
Amended by SR-NASD-2002-97 eff. July 29, 2002.
Adopted by SR-NASD-97-37 eff. July 17, 1997.
Selected Notice: 09-20.
- Regulatory Notice 18-05February 06, 2018
- Regulatory Notice 09-20April 15, 2009