<p>Applicability of Rule 3230(a) to secondary or sub-clearing arrangements with foreign securities firms.<br/><br/></p>
<p>Applicability of Rule 3230 to a three-party clearing agreement.</p>
<p>Short Sale Netting Requirements and Aggregation Units<br />
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<p>Short sales by options professionals established during the course of bona fide market making activities are exempt from the affirmative determination requirements, regardless of whether the short sales constitute a permitted offset under Regulation T.<br />
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Affirmative determination for short sales under NASD Rule 3370.<br/>
<p>NASD members must make an affirmative determination for all short sales prior to executing the sale (absent an exemption), including short positions not carried overnight.</p>
<p>Adequate documentation of reasonable efforts to borrow, standing alone, would not constitute a circumstance sufficient to mitigate the inability to deliver securities on settlement date where a member has relied upon an "Easy to Borrow" or "Hard to Borrow" list.<br />
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Uniform Practice Code Rule 11870 requires a member to adopt specific measures to facilitate the portability of all transferable securities, including mutual fund shares.<br/>
<p>Rule 11210(a)(3) does not prohibit a firm from effecting the requirements of the provision electronically, but the firm is responsible for the accuracy and proper functioning of the computer program.</p>
<p>Fair Labor Standards Act class actions are ineligible for arbitration in the NASD Regulation forum.<br />
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