3380. Order Entry and Execution Practices
This rule is no longer applicable. NASD Rule 3380 has been superseded by FINRA Rule 5290. Please consult the appropriate FINRA Rule.
No member or associated person may engage in conduct that has the intent or effect of splitting any order into multiple smaller orders for execution or any execution into multiple smaller executions for transaction reporting for the primary purpose of maximizing a monetary or in-kind amount to be received by the member or associated person as a result of the execution of such orders or the transaction reporting of such executions. For purposes of this rule, “monetary or in-kind amount” shall be defined to include, but not be limited to, any credits, commissions, gratuities, payments for or rebates of fees, or any other payments of value to the member or associated person.
Adopted by SR-NASD-2005-144 eff. May 25, 2006.
Selected Notice: 06-19.