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4613A. Character of Quotations

This rule is no longer applicable. NASD Rule 4613A has been superseded by FINRA Rules 6170 and 6272. Please consult the appropriate FINRA Rule.

(a) Two-Sided Quotations

(1) For each ADF-eligible security for which a member is a Registered Reporting ADF Market Maker, the member shall be willing to buy and sell such security for its own account on a continuous basis and shall enter and maintain two-sided quotations through the ADF, subject to the procedures for excused withdrawal set forth in Rule 4619A.

(A) A Registered Reporting ADF Market Maker in an ADF-eligible security must display a quotation size for at least one normal unit of trading (or a larger multiple thereof) when it is not displaying a limit order in compliance with SEC Rule 604.

(B) Minimum Price Variation for Decimal-based Quotations
The minimum quotation increment for securities authorized for decimal pricing as part of the SEC-approved Decimals Implementation Plan for the Equities and Options Markets shall be $0.01. Quotations failing to meet this standard shall be rejected.
(b) Primary and Additional MPIDs
(1) The first Market Participant Identifier ("MPID") issued to an NASD Market Participant shall be referred to as the NASD Market Participant's "Primary MPID." For a pilot period ending January 30, 2009, a Registered Reporting ADF ECN may request the use of Additional MPIDs for displaying quotes/orders and reporting trades through TRACS for any ADF-Eligible Security (as defined in NASD Rule 4100A). A Registered Reporting ADF ECN that ceases to meet the obligations appurtenant to its Primary MPID in any security shall not be permitted to use Additional MPIDs for any purpose in that security.
(c) Firm Quotations

(1) Consistent with SEC Rule 602(b)(2), an ADF Trading Center that receives an offer to buy or sell from another broker-dealer shall execute a transaction for at least a normal unit of trading at its displayed quotations as disseminated through the ADF at the time of receipt of any such offer. If an ADF Trading Center displays a quotation for a size greater than a normal unit of trading, it shall, upon receipt of an offer to buy or sell from another broker-dealer, execute a transaction at least at the size displayed.

(2) If an ADF Trading Center, upon receipt of an offer to buy or sell from another broker-dealer in any amount that is at least one normal unit of trading greater than its published quotation size as disseminated through NASD's the ADF at the time of receipt of any such offer, executes a transaction in an amount of shares less than the size of the offer, then such ADF Trading Center shall, immediately after such execution, display a revised quotation at a price that is inferior to its previous published quotation. The failure of an ADF Trading Center to execute the offer in an amount greater than its published quotation size shall not constitute a violation of subparagraph (b)(1) of this rule.

(d) Quotations Reasonably Related to the Market
A Registered Reporting ADF Market Maker shall enter and maintain quotations that are reasonably related to the prevailing market. In the event it appears that a Registered Reporting ADF Market Maker's quotations are no longer reasonably related to the prevailing market, NASD may require the Registered Reporting ADF Market Maker to re-enter its quotations. If a Registered Reporting ADF Market Maker whose quotations are no longer reasonably related to the prevailing market fails to re-enter its quotations, NASD may suspend the Registered Reporting ADF Market Maker's quotations in one or all securities.
Amended by SR-NASD-2008-003 eff. Jan. 25, 2008.
Amended by SR-NASD-2007-001 eff. March 5, 2007.
Amended by SR-NASD-2006-091 eff. March 5, 2007.
Amended by SR-NASD-2007-008 eff. Jan 26, 2007.
Amended by SR-NASD-2006-096 eff. Aug. 8, 2006.
Amended by SR-NASD-2005-087 eff. Aug. 1, 2006.
Amended by SR-NASD-2003-175 eff. Mar. 12, 2004.
Amended by SR-NASD-2003-181 eff. Dec. 4, 2003.
Amended by SR-NASD-2003-67 eff. April 7, 2003.
Adopted by SR-NASD-2002-97 eff. July 29, 2002.