For updates and guidance related to COVID-19 / Coronavirus, click here.
This rule is no longer applicable. NASD Rule 4200 has been superseded by FINRA Rule 6320A. Please consult the appropriate FINRA Rule.
(a) For purposes of the Rule 4000 Series, unless the context requires otherwise:
(1) "Act" means the Securities Exchange Act of 1934.
(2) "Designated securities" means all NMS stocks as defined in SEC Rule 600(b)(47).
(3) "Member" means a broker or dealer admitted to NASD membership.
(4) "Market Maker" means an "exchange market maker" or "OTC market maker," as those terms are defined in SEC Rule 600(b), that is registered in a particular designated security as such with an exchange or a registered securities association or a facility thereof. A member is considered a Market Maker only in those designated securities for which it is registered as such.
(5) "Nasdaq" means the NASDAQ Stock Market, LLC. and its facilities.
(6) "Normal market hours" means 9:30 a.m. Eastern Time to 4:00 p.m. Eastern Time.
(7) "Normal unit of trading" means 100 shares of a security unless, with respect to a particular security, NASD determines that a normal unit of trading shall constitute other than 100 shares.
(8) "Otherwise than on an exchange" means a trade effected by an NASD member otherwise than on or through the facilities of a national securities exchange. The determination of what constitutes a trade "on or through" a particular national securities exchange shall be determined by that exchange in accordance with all applicable statutes, rules and regulations, and with any necessary SEC approval.
(9) "Round lot holder" means a holder of a normal unit of trading.
(10) "Stop Stock Price" means the specified price at which a member and another party agree a Stop Stock Transaction shall be executed, and which price is based upon the prices at which the security is trading at the time the order is received by the member, taking into consideration that the specified price may deviate from the current market prices to factor in the size of the order and the number of shares available at those prices.
(11) "Stop Stock Transaction" means any transaction that meets both of the following conditions:
(A) the transaction is the result of an order in which a member and another party agree that the order will be executed at a Stop Stock Price or better; and
(B) the order is executed at the Stop Stock Price or better.
(12) "Trade Reporting Facility Participant" or "Participant" means any member in good standing that uses the NASD/Nasdaq Trade Reporting Facility.
Amended by SR-NASD-2006-104 eff. March 5, 2007.
Amended by SR-NASD-2006-087 eff. Aug. 1, 2006.
Adopted by SR-NASD-2005-087 eff. Aug. 1, 2006.