Rule 430 Partial Delivery of Securities to Customers on C.O.D. Purchases
This rule is no longer applicable.
No member organization may accept from a customer a purchase order for any security, other than obligations of the United States Government, unless it has first ascertained that the customer placing the order or its agent will receive against payment securities in an amount equal to any execution confirmed to the customer, even though such an execution may represent the purchase of only a part of a larger order.
/01 Partial Deliveries
Every member organization carrying accounts must have a supervisory designee personally check at the working level that:
Every member organization carrying accounts must have a supervisory designee personally check at the working level that:
• All COD executions are separately confirmed to permit partial deliveries;
• Partial deliveries are made as soon as securities are available to do so;
• No customers receive preferential treatment by means of employees holding a possible partial delivery until securities are assembled for a full delivery.
Failure to use partial deliveries when possible will be considered a violation of the principles of Regulation T and Rule 430.