Rule 435. Miscellaneous Prohibitions
This rule is no longer applicable. Incorporated NYSE Rules have been superseded by Temporary Dual FINRA-NYSE member Rule Series. Please consult the appropriate FINRA Rule.
No member, member organization, or allied member therein shall:
(1) Excessive trading by members
Effect on the Exchange purchases or sales for any account in which he or it is directly or indirectly interested, which purchases or sales are excessive in view of his or its financial resources or in view of the market for such security.
Effect on the Exchange purchases or sales for any account in which he or it is directly or indirectly interested, which purchases or sales are excessive in view of his or its financial resources or in view of the market for such security.
(2) Excessive trading in discretionary accounts
[Deleted by amendment of December 19, 1968.]
[Deleted by amendment of December 19, 1968.]
(3) Successive transactions by members
Execute or cause to be executed on the Exchange the purchase of any security at successively higher prices or the sale of any security at successively lower prices for the purpose of creating or inducing a false, misleading or artificial appearance of activity in such security, or for the purpose of unduly or improperly influencing the market price of such security, or for the purpose of making a price which does not reflect the true state of the market in such security.
Execute or cause to be executed on the Exchange the purchase of any security at successively higher prices or the sale of any security at successively lower prices for the purpose of creating or inducing a false, misleading or artificial appearance of activity in such security, or for the purpose of unduly or improperly influencing the market price of such security, or for the purpose of making a price which does not reflect the true state of the market in such security.
(4) Manipulative operations
Directly or indirectly participate in or have any interest in the profits of a manipulative operation or knowingly manage or finance a manipulative operation.
For the purpose of paragraph (4), (A) any pool, syndicate or joint account, whether in corporate form or otherwise, organized or used intentionally for the purpose of unfairly influencing the market price of any security by means of options or otherwise and for the purpose of making a profit thereby shall be deemed to be a manipulative operation; (B) the soliciting of subscriptions to any such pool, syndicate or joint account or the accepting of discretionary orders from any such pool, syndicate or joint account shall be deemed to be managing a manipulative operation; and (C) the carrying on margin of either a "long" or a "short" position in securities for, or the advancing of credit through loans of money or of securities to, any such pool, syndicate or joint account shall be deemed to be financing a manipulative operation.
Directly or indirectly participate in or have any interest in the profits of a manipulative operation or knowingly manage or finance a manipulative operation.
For the purpose of paragraph (4), (A) any pool, syndicate or joint account, whether in corporate form or otherwise, organized or used intentionally for the purpose of unfairly influencing the market price of any security by means of options or otherwise and for the purpose of making a profit thereby shall be deemed to be a manipulative operation; (B) the soliciting of subscriptions to any such pool, syndicate or joint account or the accepting of discretionary orders from any such pool, syndicate or joint account shall be deemed to be managing a manipulative operation; and (C) the carrying on margin of either a "long" or a "short" position in securities for, or the advancing of credit through loans of money or of securities to, any such pool, syndicate or joint account shall be deemed to be financing a manipulative operation.
(5) Circulation of rumors
Circulate in any manner rumors of a sensational character which might reasonably be expected to affect market conditions on the Exchange. Discussion of unsubstantiated information published by a widely circulated public media is not prohibited when its source and unsubstantiated nature are also disclosed. Report shall be promptly made to the Exchange of any circumstance which gives reason to believe that any rumor or unsubstantiated information might have been originated or circulated for the purpose of influencing prices in listed securities.
Circulate in any manner rumors of a sensational character which might reasonably be expected to affect market conditions on the Exchange. Discussion of unsubstantiated information published by a widely circulated public media is not prohibited when its source and unsubstantiated nature are also disclosed. Report shall be promptly made to the Exchange of any circumstance which gives reason to believe that any rumor or unsubstantiated information might have been originated or circulated for the purpose of influencing prices in listed securities.
(6) Reopening a contract
Reopen a contract which is subject to a transfer tax for the purpose of allowing another member or member organization to intervene in such transaction, or for the purpose of making a contract in his or its own interest at a different price.
Reopen a contract which is subject to a transfer tax for the purpose of allowing another member or member organization to intervene in such transaction, or for the purpose of making a contract in his or its own interest at a different price.
(7) Loans for account of non-members
Loan money upon the security of stocks, bonds or other investment securities for the account of any nonbanking corporation, partnership, association, business trust, other entity or individual.
Loan money upon the security of stocks, bonds or other investment securities for the account of any nonbanking corporation, partnership, association, business trust, other entity or individual.
| Amendments. April 21, 1966. December 19, 1968. March 26, 1970. December 11, 1975; effective March 12, 1976. Amended by SR-FINRA-2008-036 eff. Nov. 11, 2008. Amended by SR-FINRA-2008-028 eff. Dec. 15, 2008. Amended by SR-FINRA-2019-009 eff. May 8, 2019. Selected Notice: 08-57, 08-64. |