11890. Clearly Erroneous Transactions

(1) A member or person associated with a member may appeal a determination made under paragraph (a) to the UPC Committee, unless the officer making the determination also determines that the number of the affected transactions is such that immediate finality is necessary to maintain a fair and orderly market and to protect investors and the public interest. An appeal must be made in writing, and must be received by NASD within thirty (30) minutes after the person making the appeal is given the notification of the determination being appealed, except that if NASD notifies the parties of action taken pursuant to paragraph (a) after 4:00 p.m., the appeal must be received by 9:30 a.m. the next trading day. Once a written appeal has been received, the counterparty to the trade that is the subject of the appeal will be notified of the appeal and both parties shall be able to submit any additional supporting written information up until the time the appeal is considered by the UPC Committee. Either party to a disputed trade may request the written information provided by the other party during the appeal process. An appeal shall not operate as a stay of the determination being appealed, and the scope of the appeal shall be limited to trades which the person making the appeal is a party. Once a party has appealed a determination to the UPC Committee, the determination shall be reviewed and a decision rendered, unless (i) both parties to the transaction agree to withdraw the appeal prior to the time a decision is rendered, or (ii) the party filing the appeal withdraws its appeal prior to the notification of counterparties under this paragraph (b)(1). Upon consideration of the record, and after such hearings as it may in its discretion order, the UPC Committee, pursuant to the standards set forth in this rule, shall affirm, modify, reverse, or remand the determination.

(2) The decision of the UPC Committee pursuant to an appeal, or a determination by an NASD officer that is not appealed, shall be final and binding upon all parties and shall constitute final action on the matter in issue. Any determination by an NASD officer pursuant to paragraph (a) or any decision by the UPC Committee pursuant to paragraph (b) shall be rendered without prejudice as to the rights of the parties to the transaction to submit their dispute to arbitration.

(1) All materials submitted pursuant to this Rule shall be submitted within the time parameters specified herein via such telecommunications procedures as NASD may announce from time to time in an NASD Notice to Members . Materials shall be deemed received at the time indicated by the equipment (i.e., facsimile machine or computer) receiving the materials. NASD, in its sole and absolute discretion, reserves the right to reject or accept any material that is not received within the time parameters specified herein.

(2) NASD shall provide affected parties with prompt notice of determinations under this Rule via facsimile machine, electronic mail, or telephone (including voicemail); provided, however, that if an officer nullifies or modifies a large number of transactions pursuant to paragraph (a), NASD may instead provide notice to parties via a press release or any other method reasonably expected to provide rapid notice to many market participants.