3360. Short-Interest Reporting
This rule is no longer applicable. NASD Rule 3360 has been superseded by FINRA Rule 4560. Please consult the appropriate FINRA Rule.
(a) Each member shall maintain a record of total "short" positions in all customer and proprietary firm accounts in OTC Equity Securities, securities listed on a national securities exchange and not otherwise reported to another self-regulatory organization and shall regularly report such information to NASD in such a manner as may be prescribed by NASD. Reports shall be made as of the close of the settlement date designated by NASD. Reports shall be received by NASD no later than the second business day after the reporting settlement date designated by NASD.
(b) For purposes of this Rule:
(1) "short" positions to be reported are those resulting from "short sales" as that term is defined in SEC Rule 200(a) of Regulation SHO, with the exception of positions that meet the following requirements:
(A) any sale by any person, for an account in which he has an interest, if such person owns the security sold and intends to deliver such security as soon as is possible without undue inconvenience or expense;
(B) any sale of a security (except a sale to a stabilizing bid complying with Rule 104 of Regulation M) effected with the approval of an exchange which is necessary to equalize the price of such security thereon with the current price of such security on another national securities exchange which is the principal exchange market for such security;
(C) any sale of a security for a special arbitrage account by a person who then owns another security by virtue of which he is, or presently will be entitled to acquire an equivalent number of securities of the same class as the securities sold; provided such sale, or the purchase which such sale offsets, is effected for the bona fide purpose of profitting from a current difference between the price of security sold and the security owned and that such right of acquisition was originally attached to or represented by another security or was issued to all the holders of any such class of securities of the issuer;
(D) any sale of a security registered on, or admitted to unlisted trading privileges on, a national securities exchange effected for a special international arbitrage account for the bona fide purpose of profitting from a current difference between the price of such security on a securities market not within or subject to the jurisdiction of the United States and on a securities market subject to the jurisdiction of the United States; provided the seller at the time of such sale knows or, by virtue of information currently received, has reasonable grounds to believe that an offer enabling him to cover such sale is then available to him in such foreign securities market and intends to accept such offer immediately; and
(E) any sale by an underwriter, or any member of a syndicate or group participating in the distribution of a security, in connection with an over-allotment of securities, or any lay-off sale by such a person in connection with a distribution of securities through rights or a standby underwriting commitment.
(2) the term "customer" includes a broker-dealer; and
(3) the term "OTC Equity Securities" shall mean any equity security that is not listed on a national securities exchange.
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Amended by SR-NASD-2006-131 eff. Sept. 6, 2007. Amended by SR-NASD-2007-047 eff. July 6, 2007. Amended by SR-NASD-2005-087 eff. Aug. 1, 2006. Amended by SR-NASD-2005-112 eff. July 3, 2006. Amended by SR-NASD-2005-001 eff. Jan. 7, 2005. Amended by SR-NASD-2002-178 eff. Dec. 16, 2002. Amended by SR-NASD-94-67 eff. May 1, 1995. Amended eff. Aug. 31, 1987. Adopted by SR-NASD-85-34 eff. Jan. 20, 1986. Selected Notices: 85-77, 85-87, 86-4, 86-15, 86-61, 87-15, 95-8, 03-08, 07-24, 07-31. |