Rule 440G. Transactions in Stocks and Warrants for the Accounts of Members, Principal Executives and Member Organizations
This rule is no longer applicable effective December 15, 2008.
• • • Supplementary Material: --------------
Reports on Form 121
.10 Requirements for filing
Any ROUND-LOT purchase or sale of stock (or certificates therefor) or warrant effected on the floor of the New York Stock Exchange for the accounts of:
Any ROUND-LOT purchase or sale of stock (or certificates therefor) or warrant effected on the floor of the New York Stock Exchange for the accounts of:
a) NYSE members;
b) principal executives; or
c) NYSE member organizations,
must be reported on Form 121 regardless of where the order originated or by whom it was executed.
Instructions
Instructions
(1) An account is defined as any account in which the member, member organization or principal executive thereof has a direct or indirect beneficial interest. It is not confined only to an account actually in the respondent's name. Generally, a person should include transactions in securities held in the name of a spouse, minor children or other relatives who share the same home as the reporting person, as being beneficially owned by such person. In addition, a person may be regarded as the beneficial owner of securities held in the name of another person, if by reason of any contract, understanding, relationship, agreement or other arrangement he obtains benefits substantially equivalent to those of ownership. This does not, however, include trusts or estates if the person has no power to make investment decisions. In other cases, if special circumstances exist indicating that a member or principal executive does not have a beneficial interest in transactions in an account in the name of members of his family, or if he wishes guidance as to whether he should report transactions in securities held by family members as being beneficially owned by him, he should contact the Member Firm Regulation Division for clarification.
(2) Member organizations should file ONLY ONE report each week to include a combined record of all reportable transactions for their firm accounts and for all NYSE members and allied members in their organization. Separate reports should NOT be filed by any partner or stockholder in a member organization. Also, a separate report should NOT be filed for a "joint account".
(a) The proportionate share of any "joint account" transactions (including odd amounts that were part of a round lot execution) should be included in the respondent's report.
(b) If the "joint account" consists solely of NYSE members, member organizations or principal executives thereof, it is permissible for one respondent to include in their/his report the full amount of any transactions for the "joint account". In this event, the report should include a notation to that effect, and the other participants should not include such transactions in their/his report.
(3) Report by TRADE (not settlement) DATES.
(4) Report only round lots (including 10-share unit stocks), or respondent's proportion of a round lot, even though the proportion amounts to an odd lot.
(5) Include "Cash", "When Issued", "When Distributed" and "Seller's Option" transactions, also on date of trade.
(6) Transactions made in error or to rectify an error:
(a) are reportable if the original order on which the error was made is reportable (i.e. it was for an NYSE member, member organization or principal executive thereof);
(b) are not reportable if the original order on which the error was made is not reportable (i.e. it was for the public).
(7) EXCLUDE the following transaction:
(a) in rights;
(b) in bonds;
(c) for error account (except where the original order, on which the error was made, was reportable);
(d) for customers other than NYSE members or principal executives of the reporting organization;
(e) in odd lots (except where they were part of a round-lot execution);
(f) stocks loaned or borrowed;
(g) executions elsewhere than on the floor of NYSE;
(h) for the odd-lot accounts of odd-lot dealers and specialist odd-lot dealers.
(8) Short sales, in addition to being included with total sales, should also be reported separately.
(9) Transactions are to be classified into one of the following three categories
(a) AS SPECIALIST. (Box 1) This includes transactions made, WHILE RUNNING THE BOOK, for the account of regular or relief specialists in the stocks or warrants in which they are registered as specialists, by them or by a partner or an officer of their organization or by a member with whom they have a joint account;
(b) ALL OTHER transactions initiated ON THE FLOOR, (Box 2) This includes all round-lot transactions reportable on Form 82A (by Registered Traders) and Form 82B (all other ON FLOOR transactions which are exempt from reporting daily on Form 82A). Included are all transactions (except "as specialist") initiated by a member (either a registered trader or any other member) while on the trading floor, regardless of whether or not they were executed by the initiating member or where the initiating member happened to be at the time of the execution. Included are transactions for the accounts of specialists in the stocks or warrants in which they are registered as specialists, if made by the specialist or his agent while they were NOT running the book. Also included are transactions for the accounts of specialists in stocks or warrants in which they are not registered as specialists;
(c) Transactions initiated OFF THE FLOOR. (Box 3) This includes all member transactions not included above.
(10) If a reporting member or member organization does not have reportable transactions during a given week, a Form 121 report should be filed marked "No transactions".
(11) The Member Firm Regulation Division will consider written requests for exemption from filing REGULAR weekly reports on Form 121. Exemption may be granted for a period of time not to exceed one year, renewable annually if the applicant does not expect to have any, or expects to have only an occasional, reportable transaction during this time. THE EXEMPTION, WHEN GRANTED, IS FROM FILING REGULARLY EACH WEEK AND, IF DURING THE EXEMPTION PERIOD A REPORTABLE TRANSACTION IS EFFECTED. A FORM 121 REPORT, FOR THE WEEK IN WHICH THE TRANSACTION(S) TOOK PLACE, MUST BE FILED IMMEDIATELY.
(12) File this report with the Credit Regulation Department, via the New York Stock Exchange's Electronic Filing Platform ("EFP") as soon as possible but not later than 12:00 noon on the Friday following the week covered by the report.
(13) Inquiries should be addressed to the Credit Regulation Department, telephone 212-656-8572.
(14) Reserved.
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Amended: October 19, 1967, effective January 1, 1968; December 16, 1971; February 25, 2005 (NYSE-2005-07); amended by SR-FINRA-2007-025 eff December 5, 2007. Amended by SR-FINRA-2008-036 eff. Nov. 11, 2008. Selected Notice: 08-64. |