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2850. Position Limits

This rule is no longer applicable. NASD Rule 2850 has been superseded by FINRA Rule 2359. Please consult the appropriate FINRA Rule.

Except with the prior written approval of the Association pursuant to the Rule 9600 Series for good cause shown, no member shall effect for any account in which such member has an interest, or for the account of any partner, officer, director or employee thereof, or for the account of any customer, a purchase or sale transaction in an index warrant listed on a national securities exchange if the member has reason to believe that as a result of such transaction the member, or partner, officer, director or employee thereof, or customer would, acting alone or in concert with others, directly or indirectly, hold or control an aggregate position in an index warrant issue on the same side of the market, combining such index warrant position with positions in index warrants overlying the same index on the same side of the market, in excess of the position limits established by the exchange on which the index warrant is listed.

Amended by SR-NASD-2005-087 eff. Aug. 1, 2006.
Amended by SR-NASD-97-28 eff. Aug. 7, 1997.
Adopted by SR-NASD-95-37 eff. Sept. 28, 1995.

Selected Notice: 95-82.