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6610. Definitions

This rule is no longer applicable. NASD Rule 6610 has been superseded by FINRA Rule 6420. Please consult the appropriate FINRA Rule.

(a) Terms used in this Rule shall have the same meaning as those defined in the Association's By-Laws and Rules unless otherwise specified herein.

(b) "Non-Market Maker" means a member of the Association that is not an OTC Market Maker with respect to a particular OTC Equity Security.

(c) "Non-exchange-listed security" means any equity security that is not traded on any national securities exchange. The term "non-exchange-listed security" shall not include "restricted securities," as defined by SEC Rule 144(a)(3) under the Securities Act of 1933, nor any securities designated in the PORTAL Market, the Rule 6700 Series.

(d) "OTC Equity Security" means any non-exchange-listed security and certain exchange-listed securities that do not otherwise qualify for real-time trade reporting.
(e) "OTC Market Maker" means a member of the Association that holds itself out as a market maker by entering proprietary quotations or indications of interest for a particular OTC Equity Security in any inter-dealer quotation system, including any system that the Commission has qualified pursuant to Section 17B of the Act. A member is an OTC Market Maker only in those OTC Equity Securities in which it displays market making interest via an inter-dealer quotation system.

(f) "Priced entry" shall mean a quotation consisting of a bid, offer, or both at a specified price.

(g) "Quotation" shall mean any bid or offer at a specified price with respect to a non-exchange-listed security, or any indication of interest by a broker or dealer in receiving bids or offers from others for such a security, or any indication by a broker or dealer that it wishes to advertise its general interest in buying or selling a particular non-exchange-listed security.

(h) "Quotation medium" means any inter-dealer quotation system (except for the PORTAL Market) or any publication or electronic communications network or other device that is used by brokers or dealers to make known to others their interest in transactions in any non-exchange-listed security, including offers to buy or sell at a stated price or otherwise, or invitations of offers to buy or sell.

(i) "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.
(j) "Stop Stock Transaction" means any transaction that meets both of the following conditions:
(1) the transaction is the result of an order in which a member and another party agree that the order shall be executed at a Stop Stock Price or better; and
(2) the order is executed at the Stop Stock Price.
(k) "OTC Reporting Facility" means, for the purposes of the Rule 6600 Series, the service provided by NASD that accommodates reporting and dissemination of last sale reports in OTC Equity Securities. Regarding those OTC Equity Securities that are not eligible for clearance and settlement through the facilities of the National Securities Clearing Corporation, the OTC Reporting Facility comparison function will not be available. However, the OTC Reporting Facility will support the entry and dissemination of last sale data on such securities.
Amended by SR-NASD-2005-087 eff. Aug. 1, 2006.
Amended by SR-NASD-2004-151 eff. Oct. 12, 2004.
Amended by SR-NASD-2004-076 eff. May 5, 2004.

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