Skip to main content

For updates and guidance related to COVID-19 / Coronavirus, click here.

11100. SCOPE OF UNIFORM PRACTICE CODE

This rule is no longer applicable. NASD Rule 11000 Series has been superseded by FINRA Rule 11000 Series. Please consult the appropriate FINRA Rule.

(a) All over-the-counter secondary market transactions in securities (including restricted securities, as defined in Rule 144(a)(3) under the Securities Act of 1933) between members, including the rights and liabilities of the members participating in the transaction, and those operational procedures that affect the day-to-day business of members shall be subject to the provisions of this Code except:

(1) transactions in securities between members which are compared, cleared or settled through the facilities of a registered clearing agency, except to the extent that the rules of the clearing agency provide that rules of other organizations shall apply.

(2) transactions in securities exempted under Section 3(a)(12) of the Act.

(3) transactions in municipal securities is defined in Section 3(a)(29) of the Act.

(4) transactions in redeemable securities issued by companies registered under the Investment Company Act of 1940; provided however that the Code shall apply to secondary market transactions between members in any security issued by a registered investment company classified as a "unit investment trust" under Section 4 of the Investment Company Act. Redemption of securities directly by the trustee of the unit investment trust are not transactions between members for purposes of this paragraph.

(5) transactions in Direct Participation Program securities as defined in Rule 2810 of the Association's Rules, except as otherwise provided in this Code.

(b) The scope of coverage contained in paragraph (a) above may be expanded or limited in any Rule of this Code if specifically provided therein.

(c) In trades between members, failure to deliver the securities sold, or failure to pay for securities as delivered, on or after the settlement date, does not effect a cancellation of the contract. The remedy for the buyer or seller is provided for by Rules 11810 and 11820 respectively unless the parties mutually consent to cancel the trade. In every such case of nondelivery of securities, the party in default shall be liable for any damages which may accrue thereby. All claims for such damages shall be made promptly.

(d) The CUSIP number must be used on the Uniform Transfer Instruction Form, Uniform Delivery Ticket and the Uniform Comparison or Confirmation.

Amended by SR-NASD-97-06 eff. Apr. 9, 1997.
Amended by SR-NASD-95-53 eff. Jan. 29, 1996.
Amended eff. Jan. 1, 1973; Jan. 13, 1977; Apr. 7, 1978; Nov. 9, 1982; Mar. 18, 1983; Jan. 1, 1985.

Selected Notices: 83-69, 84-46, 84-68, 84-73, 91-63, 96-14.

No Results Found

No Results Found

No Results Found

No Results Found