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Finra Rule: UNIFORM PRACTICE CODE
USINFO | 2013-12-18 16:10
Contents:
11100. SCOPE OF UNIFORM PRACTICE CODE
11110. Committees
11120. Definitions
11130. When, As and If Issued/Distributed Contracts
11140. Transactions in Securities "Ex-Dividend," "Ex-Rights" or "Ex-Warrants"
11150. Transactions "Ex-Interest" in Bonds Which Are Dealt in "Flat"
11160. "Ex" Liquidating Payments
11170. Transactions in "Part-Redeemed" Bonds
11190. Reconfirmation and Pricing Service Participants
11200. COMPARISONS OR CONFIRMATIONS AND "DON'T KNOW NOTICES"
11210. Sent by Each Party
11220. Description of Securities.
11300. DELIVERY OF SECURITIES
11310. Book-Entry Settlement
11320. Dates of Delivery
11330. Payment
11340. Stamp Taxes
11350. Part Delivery
11360. Units of Delivery
11400. DELIVERY OF SECURITIES WITH DRAFT ATTACHED
11410. Acceptance of Draft
11500. DELIVERY OF SECURITIES WITH RESTRICTIONS
11510. Delivery of Temporary Certificates
11520. Delivery of Mutilated Securities
11530. Delivery of Securities Called for Redemption or Which Are Deemed Worthless
11540. Delivery Under Government Regulations
11550. Assignments and Powers of Substitution; Delivery of Registered Securities
11560. Certificate of Company Whose Transfer Books Are Closed
11570. Certificates in Various Names
11580. Transfer of Limited Partnership Securities
11600. DELIVERY OF BONDS AND OTHER EVIDENCES OF INDEBTEDNESS
11610. Liability for Expenses
11620. Computation of Interest
11630. Due-Bills and Due-Bill Checks
11640. Claims for Dividends, Rights, Interest, etc.
11650. Transfer Fees
11700. RECLAMATIONS AND REJECTIONS
11710. General Provisions
11720. Irregular Delivery — Transfer Refused — Lost or Stolen Securities
11730. Called Securities
11740. Marking to the Market
11800. CLOSE-OUT PROCEDURES
11810. Buy-In Procedures and Requirements
11820. Selling-Out
11840. Rights and Warrants
11860. COD Orders
11870. Customer Account Transfer Contracts
11880. Settlement of Syndicate Accounts
11890. Clearly Erroneous Transactions
11900. Clearance of Corporate Debt Securities
11000. UNIFORM PRACTICE CODE
11100. SCOPE OF UNIFORM PRACTICE CODE
(a) All over-the-counter secondary market transactions in securities (including restricted securities, as defined in Rule 144(a)(3) under the Securities Act) between members, including the rights and liabilities of the members participating in the transaction, and those operational procedures that affect the day-to-day business of members shall be subject to the provisions of this Code except:
(1) transactions in securities between members which are compared, cleared or settled through the facilities of a registered clearing agency, except to the extent that the rules of the clearing agency provide that rules of other organizations shall apply.
(2) transactions in securities exempted under Section 3(a)(12) of the Exchange Act.
(3) transactions in municipal securities as defined in Section 3(a)(29) of the Exchange Act.
(4) transactions in redeemable securities issued by companies registered under the Investment Company Act; provided however that the Code shall apply to secondary market transactions between members in any security issued by a registered investment company classified as a "unit investment trust" under Section 4 of the Investment Company Act. Redemption of securities directly by the trustee of the unit investment trust are not transactions between members for purposes of this subparagraph.
(5) transactions in Direct Participation Program securities as defined in Rule 2310, except as otherwise provided in this Code.
(b) The scope of coverage contained in paragraph (a) of this Rule may be expanded or limited in any Rule of this Code if specifically provided therein.
(c) In trades between members, failure to deliver the securities sold, or failure to pay for securities as delivered, on or after the settlement date, does not effect a cancellation of the contract. The remedy for the buyer or seller is provided for by Rules 11810 and 11820 respectively unless the parties mutually consent to cancel the trade. In every such case of nondelivery of securities, the party in default shall be liable for any damages which may accrue thereby. All claims for such damages shall be made promptly.
(d) The CUSIP number must be used on the Uniform Transfer Instruction Form, Uniform Delivery Ticket and the Uniform Comparison or Confirmation.
11110. Committees
A committee designated by the Board of Governors, the Uniform Practice Code Committee (the "Committee"), shall have the power to issue interpretations or rulings with respect to the applicability of this Code to situations in which there is no substantial disagreement as to the facts involved in order to make custom, practice, usage, and trading technique in the investment banking and securities business uniform, to simplify and facilitate day-to-day business of members and to remove causes for business disputes and misunderstandings which arise from uncertainty and lack of uniformity, including rulings in connection with "when, as and if issued" trading and "when, as and if distributed" trading, whether a security tendered is a good delivery in settlement of such contracts and clearly erroneous transactions.
11111. Refusal to Abide by Rulings of the Committee
It shall be considered conduct inconsistent with just and equitable principles of trade for any member to refuse to take any action that is necessary to effectuate a final decision of a FINRA officer or the UPC Committee under the UPC Code (FINRA Rule 11000 Series) or other FINRA rules that permit review of FINRA decisions by the UPC Committee.
11112. Review by Panels of the UPC Committee
For purposes of the UPC Code (FINRA Rule 11000 Series) and other FINRA rules that permit review of FINRA decisions by the UPC Committee, a decision of the UPC Committee may be rendered by a panel of that Committee. The panel shall consist of three or more members of the UPC Committee, provided that no more than 50 percent of the members of any panel are directly engaged in market making activity or employed by a member whose revenues from market making activity exceed ten percent of its total revenues.
11120. Definitions
(a) Code or UPC Code
The term "Code" or "UPC Code" as used in the FINRA Rule 11000 Series shall mean the FINRA Rule 11000 Series.
(b) Committee
The term "Committee" as used in this Code, unless the context otherwise requires, shall mean the Uniform Practice Code (UPC) Committee delegated the authority to administer this Code by the Board of Governors.
(c) Delivery Date
The term "delivery date" as used in this Code shall be used interchangeably with "settlement date" and shall mean the date designated for the delivery of securities.
11100. SCOPE OF UNIFORM PRACTICE CODE
11110. Committees
11120. Definitions
11130. When, As and If Issued/Distributed Contracts
11140. Transactions in Securities "Ex-Dividend," "Ex-Rights" or "Ex-Warrants"
11150. Transactions "Ex-Interest" in Bonds Which Are Dealt in "Flat"
11160. "Ex" Liquidating Payments
11170. Transactions in "Part-Redeemed" Bonds
11190. Reconfirmation and Pricing Service Participants
11200. COMPARISONS OR CONFIRMATIONS AND "DON'T KNOW NOTICES"
11210. Sent by Each Party
11220. Description of Securities.
11300. DELIVERY OF SECURITIES
11310. Book-Entry Settlement
11320. Dates of Delivery
11330. Payment
11340. Stamp Taxes
11350. Part Delivery
11360. Units of Delivery
11400. DELIVERY OF SECURITIES WITH DRAFT ATTACHED
11410. Acceptance of Draft
11500. DELIVERY OF SECURITIES WITH RESTRICTIONS
11510. Delivery of Temporary Certificates
11520. Delivery of Mutilated Securities
11530. Delivery of Securities Called for Redemption or Which Are Deemed Worthless
11540. Delivery Under Government Regulations
11550. Assignments and Powers of Substitution; Delivery of Registered Securities
11560. Certificate of Company Whose Transfer Books Are Closed
11570. Certificates in Various Names
11580. Transfer of Limited Partnership Securities
11600. DELIVERY OF BONDS AND OTHER EVIDENCES OF INDEBTEDNESS
11610. Liability for Expenses
11620. Computation of Interest
11630. Due-Bills and Due-Bill Checks
11640. Claims for Dividends, Rights, Interest, etc.
11650. Transfer Fees
11700. RECLAMATIONS AND REJECTIONS
11710. General Provisions
11720. Irregular Delivery — Transfer Refused — Lost or Stolen Securities
11730. Called Securities
11740. Marking to the Market
11800. CLOSE-OUT PROCEDURES
11810. Buy-In Procedures and Requirements
11820. Selling-Out
11840. Rights and Warrants
11860. COD Orders
11870. Customer Account Transfer Contracts
11880. Settlement of Syndicate Accounts
11890. Clearly Erroneous Transactions
11900. Clearance of Corporate Debt Securities
11000. UNIFORM PRACTICE CODE
11100. SCOPE OF UNIFORM PRACTICE CODE
(a) All over-the-counter secondary market transactions in securities (including restricted securities, as defined in Rule 144(a)(3) under the Securities Act) between members, including the rights and liabilities of the members participating in the transaction, and those operational procedures that affect the day-to-day business of members shall be subject to the provisions of this Code except:
(1) transactions in securities between members which are compared, cleared or settled through the facilities of a registered clearing agency, except to the extent that the rules of the clearing agency provide that rules of other organizations shall apply.
(2) transactions in securities exempted under Section 3(a)(12) of the Exchange Act.
(3) transactions in municipal securities as defined in Section 3(a)(29) of the Exchange Act.
(4) transactions in redeemable securities issued by companies registered under the Investment Company Act; provided however that the Code shall apply to secondary market transactions between members in any security issued by a registered investment company classified as a "unit investment trust" under Section 4 of the Investment Company Act. Redemption of securities directly by the trustee of the unit investment trust are not transactions between members for purposes of this subparagraph.
(5) transactions in Direct Participation Program securities as defined in Rule 2310, except as otherwise provided in this Code.
(b) The scope of coverage contained in paragraph (a) of this Rule may be expanded or limited in any Rule of this Code if specifically provided therein.
(c) In trades between members, failure to deliver the securities sold, or failure to pay for securities as delivered, on or after the settlement date, does not effect a cancellation of the contract. The remedy for the buyer or seller is provided for by Rules 11810 and 11820 respectively unless the parties mutually consent to cancel the trade. In every such case of nondelivery of securities, the party in default shall be liable for any damages which may accrue thereby. All claims for such damages shall be made promptly.
(d) The CUSIP number must be used on the Uniform Transfer Instruction Form, Uniform Delivery Ticket and the Uniform Comparison or Confirmation.
11110. Committees
A committee designated by the Board of Governors, the Uniform Practice Code Committee (the "Committee"), shall have the power to issue interpretations or rulings with respect to the applicability of this Code to situations in which there is no substantial disagreement as to the facts involved in order to make custom, practice, usage, and trading technique in the investment banking and securities business uniform, to simplify and facilitate day-to-day business of members and to remove causes for business disputes and misunderstandings which arise from uncertainty and lack of uniformity, including rulings in connection with "when, as and if issued" trading and "when, as and if distributed" trading, whether a security tendered is a good delivery in settlement of such contracts and clearly erroneous transactions.
11111. Refusal to Abide by Rulings of the Committee
It shall be considered conduct inconsistent with just and equitable principles of trade for any member to refuse to take any action that is necessary to effectuate a final decision of a FINRA officer or the UPC Committee under the UPC Code (FINRA Rule 11000 Series) or other FINRA rules that permit review of FINRA decisions by the UPC Committee.
11112. Review by Panels of the UPC Committee
For purposes of the UPC Code (FINRA Rule 11000 Series) and other FINRA rules that permit review of FINRA decisions by the UPC Committee, a decision of the UPC Committee may be rendered by a panel of that Committee. The panel shall consist of three or more members of the UPC Committee, provided that no more than 50 percent of the members of any panel are directly engaged in market making activity or employed by a member whose revenues from market making activity exceed ten percent of its total revenues.
11120. Definitions
(a) Code or UPC Code
The term "Code" or "UPC Code" as used in the FINRA Rule 11000 Series shall mean the FINRA Rule 11000 Series.
(b) Committee
The term "Committee" as used in this Code, unless the context otherwise requires, shall mean the Uniform Practice Code (UPC) Committee delegated the authority to administer this Code by the Board of Governors.
(c) Delivery Date
The term "delivery date" as used in this Code shall be used interchangeably with "settlement date" and shall mean the date designated for the delivery of securities.
