Clearly Erroneous Filing

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NASDAQ Reg Recon users can search for and submit erroneous filings in seconds. Reg Recon also offers real time status updates of erroneous filings and the ability to electronically negotiate adjustments and mutual breaks, and it provides a street-wide view of what is being adjudicated in the NASDAQ marketplace.


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Submission Form

*Indicates Required Field

*Issue Symbol:
*Your Firm's MPID:
*Contact Name:
*Contact Phone/Extension:
Contact Email:
*Total Number of Shares Executed:
*Execution Time From:::*To:::
*Transaction Price Range From:*To:
*Side:
*System used to Execute Transactions:
*Error Details:
Document:
(.txt, .doc, .docx, .pdf, .jpg, .gif, .xls, .xlsx, .csv, .htm, .html files only. ) The file size must be < 3 MB.
 
Question:What is 59 + 92 ? (Example: 11 + 22 = 33)
*Answer: Please enter only the answer for the question shown above
 


Clearly Erroneous Transactions Policy





Documentation

  • Market participant must file a request electronically. If there are problems with an electronic submittal, please print this form and fax to 301.978.8511. A phone call is not necessary prior to filing.
  • NASDAQ OMX requires the following information to be included with the filing to be considered for review.
    • Time of the transaction(s)
    • Security Symbol(s)
    • Number of Shares
    • Price(s)
    • Side (Bought, Sold or Both)
    • Factual basis for believing that the trade is clearly erroneous

Filing Deadline

An erroneous complaint must be transmitted online or via facsimile to NASDAQ OMX MarketWatch within a certain time period, depending on when the alleged erroneous trade was executed.

Specifically:

Except as provided below, any member or person associated with a member that seeks to have a transaction reviewed shall submit a written complaint to NASDAQ MarketWatch within 30 minutes of the execution time. Routed executions to other market centers will generally have an additional 30 minutes from receipt of their participant's timely filing, but no longer than 60 minutes from the time of the execution at issue, to file with NASDAQ for review of transactions routed to NASDAQ from that market center and executed on NASDAQ.

In the case of an Outlier Transaction, a NASDAQ official may at its sole discretion, and on a case-by-case basis, consider requests received pursuant to this rule after 30 minutes, but not longer than 60 minutes after the transaction in question, depending on the facts and circumstances surrounding such request. "Outlier Transaction" means a transaction where:

(A) the execution price of the security is greater than three times the current Numerical Guidelines, or

(B) the execution price of the security in question is not within the Outlier Transaction parameters set forth in (A) above, but the execution price breaches the 52-week high or 52-week low. In such cases, NASDAQ may consider Additional Factors as outlined below, in determining if the transaction qualifies for further review or if NASDAQ shall decline to act.

Once a party has applied to NASDAQ for review and the transaction has been determined to be eligible for review, the transaction shall be reviewed and a determination rendered, unless (i) both parties (or the party in the case of a cross order entered into one of NASDAQ's crossing networks) to the transaction agree to withdraw the application for review prior to the time a decision is rendered by the NASDAQ official, or (ii) the complainant withdraws its application for review prior to the notification of counterparties. In the event that the NASDAQ official determines that the transaction in dispute is clearly erroneous, the official shall declare the transaction null and void. A determination shall be made generally within 30 minutes of receipt of the complaint, but in no case later than the start of Regular Trading Hours (9:30:00 to 4:00:00) on the following trading day. The parties shall be promptly notified of the determination.

Reference Price Determination

NASDAQ OMX generally uses the Numerical Threshold of a trade when determining whether a transaction is clearly erroneous. A transaction executed shall be found to be clearly erroneous only if the price of the transaction to buy (sell) that is the subject of the complaint is greater than (less than) the Reference Price by an amount that equals or exceeds the Numerical Guidelines set forth below. The execution time of the transaction under review determines whether the threshold is Regular Trading Hours or Pre-opening and After Hours Trading Hours (which occurs before and after the Regular Trading Hours). The Reference Price will be equal to the consolidated last sale immediately prior to the execution(s) under review except for: (A) Multi- Stock Events involving twenty or more securities, (B) transactions not involving a Multi- Stock Event that trigger a trading pause and subsequent transactions, and (C) in other circumstances, such as, for example, relevant news impacting a security or securities, periods of extreme market volatility, sustained illiquidity, or widespread system issues, where use of a different Reference Price is necessary for the maintenance of a fair and orderly market and the protection of investors and the public interest.

NASDAQ OMX does not normally break trades that are between the Reference Price and up to but not including the Numerical Threshold. Refer to the chart below for more details:

Reference Price, Circumstance or Product Regular Trading Hours Numerical Guidelines (Subject transaction's % difference from the Reference Price): Pre-Opening and After Hours Trading Session Numerical Guidelines (Subject transaction's % difference from the Reference Price):
Greater than $0.00 up to and including $25.00 10% 20%
Greater than $25.00 up to and including $50.00 5% 10%
Greater than $50.00 3% 6%
Multi- Stock Event - Filings involving five or more, but less than twenty, securities whose executions occurred within a period of five minutes or less 10% 10%
Multi-Stock Event - Filings involving twenty or more securities whose executions occurred within a period of five minutes or less 30%, subject to the terms of below 30%, subject to the terms of below
Leveraged ETF/ETN securities Regular Trading Hours Numerical Guidelines multiplied by the leverage multiplier (ie. 2x) Regular Trading Hours Numerical Guidelines multiplied by the leverage multiplier (ie. 2x)


Multi-Stock Events Involving Twenty or More Securities: During Multi-Stock Events involving twenty or more securities the number of affected transactions is such that immediate finality may be necessary to maintain a fair and orderly market and to protect investors and the public interest. In such circumstances, NASDAQ may use a Reference Price other than consolidated last sale. With the exception of those securities under review that are subject to an individual stock trading pause as described below, and to ensure consistent application across market centers when this paragraph is invoked, NASDAQ will promptly coordinate with the other market centers to determine the appropriate review period, which may be greater than the period of five minutes or less that triggered application of this paragraph, as well as select one or more specific points in time prior to the transactions in question and use transaction prices at or immediately prior to the one or more specific points in time selected as the Reference Price. NASDAQ will nullify as clearly erroneous all transactions that are at prices equal to or greater than 30% away from the Reference Price in each affected security during the review period selected by NASDAQ and other markets consistent with this paragraph.

Additional Factors: Except in the context of a Multi-Stock Event involving five or more securities, and individual stock trading pauses as described in below a NASDAQ official may also consider additional factors to determine whether an execution is clearly erroneous, including but not limited to, system malfunctions or disruptions, volume and volatility for the security, derivative securities products that correspond to greater than 100% in the direction of a tracking index, news released for the security, whether trading in the security was recently halted/resumed, whether the security is an IPO, whether the security was subject to a stock-split, reorganization, or other corporate action, overall market conditions, Pre-Opening and After Hours Trading Session executions, validity of the consolidated tapes trades and quotes, consideration of primary market indications, and executions inconsistent with the trading pattern in the stock. Each additional factor shall be considered with a view toward maintaining a fair and orderly market and the protection of investors and the public interest.

Individual Stock Trading Pauses: For purposes of this paragraph, the phrase "Trading Pause Trigger Price" shall mean the price that triggered a trading pause pursuant to NASDAQ Rule 4120 (a)(11). The Trading Pause Trigger Price reflects a price calculated by the primary listing market over a rolling five-minute period and may differ from the execution price of a transaction that triggered a trading pause. In the event a primary listing market issues an individual stock trading pause in any eligible securities, and regardless of whether the security at issue is part of a Multi-Stock Event involving five or more securities as described in paragraphs above, NASDAQ shall utilize the Trading Pause Trigger Price as the Reference Price for any transactions that trigger a trading pause and subsequent transactions occurring before the trading pause is in effect on NASDAQ. NASDAQ will rely on the primary listing market that issued an individual stock trading pause to determine and communicate the Trading Pause Trigger Price for such stock. Notwithstanding the discretion otherwise provided by the first sentence of paragraph (b)(ii) below, NASDAQ shall review, on its own motion pursuant to paragraph (b)(ii), transactions that trigger a trading pause and subsequent transactions occurring before the trading pause is in effect on NASDAQ. In connection with the review of transactions pursuant to this paragraph, NASDAQ will apply the Numerical Guidelines set forth in paragraph (C)(1) above other than the Numerical Guidelines applicable to Multi-Stock Events. In conducting this review, and notwithstanding anything to the contrary contained in paragraph (C)(1), where a trading pause was triggered by a price decline (rise), NASDAQ will limit its review to transactions that executed at a price lower (higher) than the Trading Pause Trigger Price.

Reviewing Transactions on NASDAQ's Own Motion

System Disruption or Malfunctions: In the event of any disruption or a malfunction in the operation of any electronic communications and trading facilities of NASDAQ in which the nullification of transactions may be necessary for the maintenance of a fair and orderly market or the protection of investors and the public interest exist, the President of NASDAQ or any designated officer or senior level employee ("Senior Official") of NASDAQ, on his or her own motion, may review such transactions and declare such transactions arising out of the operation of such facilities during such period null and void. In such events, the Senior Official will rely on the provisions of above, but in extraordinary circumstances may also use a lower Numerical Guideline if necessary to maintain a fair and orderly market, protect investors and the public interest. Absent extraordinary circumstances, any such action of the Senior Official pursuant to this paragraph shall be taken within thirty (30) minutes of detection of the erroneous transaction. When extraordinary circumstances exist, any such action of the Senior Official must be taken by no later than the start of Regular Trading Hours on the trading day following the date of execution(s) under review. Each Member involved in the transaction shall be notified as soon as practicable by NASDAQ, and the party aggrieved by the action may appeal such action in accordance with the provisions of Rule 11890(c)(1).

Senior Official Acting on Own Motion: A Senior Official, acting on his or her own motion, may review potentially erroneous executions and declare trades null and void or shall decline to take any action in connection with the completed trade(s). In such events, the Senior Official will rely on the provisions of above. Absent extraordinary circumstances, any such action of the Senior Official shall be taken in a timely fashion, generally within thirty (30) minutes of the detection of the erroneous transaction. When extraordinary circumstances exist, any such action of the Senior Official must be taken by no later than the start of Regular Trading Hours on the trading day following the date of execution(s) under review. When such action is taken independently, each party involved in the transaction shall be notified as soon as practicable by NASDAQ, and the party aggrieved by the action may appeal such action in accordance with the provisions of Rule 11890(c)(1).

Additional Information

 

Additional Information