rulebook-banner
Nasdaq Rulebook Search Banner
rulebook-rules-menurulebook-rules-menu
BSECC  | BX  | GEMX  | ISE  | MRX  | Nasdaq  | PHLX  | SCCP   
Print   Copy Link
Search in
Search
Print | Copy Link |
Home > > BX Equity 10000
10000. Code of Arbitration Procedure
10001. Regulatory Contract with FINRA

The Exchange and FINRA are parties to the FINRA Regulatory Contract, pursuant to which FINRA has agreed to perform certain functions described in the Rule 10000 Series on behalf of the Exchange. Exchange Rules that refer to the Exchange's Regulation Department, the Exchange's Regulation Department staff, Exchange staff, and Exchange departments should be understood as also referring to FINRA staff and FINRA departments acting on behalf of the Exchange pursuant to the FINRA Regulatory Contract.

Notwithstanding the fact that the Exchange has entered into the FINRA Regulatory Contract with FINRA to perform some of the Exchange's functions, the Exchange shall retain ultimate legal responsibility for, and control of, such functions. In addition, the Exchange has incorporated by reference certain NASD rules. Exchange members shall comply with these rules and interpretations as if such rules and interpretations were part of the Rules of the Exchange.

FINRA is in the process of consolidating certain NASD rules into a new FINRA rulebook. If an NASD rule that is incorporated by reference in a rule of the Exchange is transferred into the FINRA rulebook, then the Exchange rule shall be construed to require Exchange members to comply with the FINRA rule corresponding to the NASD rule (regardless of whether such rule is renumbered or amended) as if such rule were part of the Rules of the Exchange.

Amended Oct. 9, 2018 (SR-BX-2018-048), operative Nov. 9, 2018.

10100. Jurisdiction

Every member or associated person of an Exchange member shall be subject to the NASD Code of Arbitration Procedure for Customer Disputes and the NASD Code of Arbitration Procedure for Industry Disputes as may be in effect from time to time (collectively, the "NASD Code of Arbitration Procedure"), for every claim, dispute, or controversy arising out of or in connection with matters eligible for submission under Equity Rule 10101. For the purposes of this Rule, each member or associated person of an Exchange member shall be subject to and shall abide by the NASD Code of Arbitration Procedure as if such member or associated person were a "member" or "associated person" of FINRA.

FINRA is in the process of consolidating certain NASD rules into a new FINRA rulebook. If the provisions of the NASD Code of Arbitration Procedure are transferred into the FINRA rulebook, then Equity Rule 10100 shall be construed to require Exchange members to comply with the FINRA rules corresponding to the NASD Code of Arbitration Procedure (regardless of whether such rules are renumbered or amended) as if such rules were part of the Rules of the Exchange.

Amended Oct. 9, 2018 (SR-BX-2018-048), operative Nov. 9, 2018.

IM-10100. Failure to Act Under Provisions of NASD Code of Arbitration Procedure

It may be deemed conduct inconsistent with just and equitable principles of trade and a violation of Rule 2110 for a member or a person associated with a member to:

(a) fail to submit a dispute for arbitration under the NASD Code of Arbitration Procedure as required by that Code;

(b) fail to comply with any injunctive order issued pursuant to the NASD Code of Arbitration Procedure;

(c) fail to appear or to produce any document in his possession or control as directed pursuant to provisions of the NASD Code of Arbitration Procedure;

(d) fail to honor an award, or comply with a written and executed settlement agreement, obtained in connection with an arbitration submitted for disposition pursuant to the procedures specified by FINRA, Nasdaq, the New York, American, National, Chicago, or Philadelphia Stock Exchanges, NYSE Arca, the Chicago Board Options Exchange, the Municipal Securities Rulemaking Board, or pursuant to the rules applicable to the arbitration of disputes before the American Arbitration Association or other dispute resolution forum selected by the parties where timely motion has not been made to vacate or modify such award pursuant to applicable law; or

(e) fail to comply with a written and executed settlement agreement, obtained in connection with a mediation submitted for disposition pursuant to the procedures specified by FINRA.

All awards shall be honored by a cash payment to the prevailing party of the exact dollar amount stated in the award. Awards may not be honored by crediting the prevailing party's account with the dollar amount of the award, unless authorized by the express terms of the award or consented to in writing by the parties. Awards shall be honored upon receipt thereof, or within such other time period as may be prescribed by the award. Action by members requiring associated persons to waive the arbitration of disputes contrary to the provisions of the Code of Arbitration Procedure shall constitute conduct that is inconsistent with just and equitable principles of trade and a violation of Rule 2110.

Amended Oct. 9, 2018 (SR-BX-2018-048), operative Nov. 9, 2018.

10101. Matters Eligible for Submission

This Code of Arbitration Procedure is prescribed and adopted for the arbitration of any dispute, claim, or controversy arising out of or in connection with the business of any the Exchange member, or arising out of the employment or termination of employment of associated person(s) with any member, with the exception of disputes involving the insurance business of any member which is also an insurance company:

(a) between or among members;

(b) between or among members and associated persons;

(c) between or among members or associated persons and public customers, or others; and

(d) between or among members, registered clearing agencies with which the Exchange has entered into an agreement to utilize the Exchange's arbitration facilities and procedures, and participants, pledgees, or other persons using the facilities of a registered clearing agency, as these terms are defined under the rules of such a registered clearing agency.

Amended Oct. 9, 2018 (SR-BX-2018-048), operative Nov. 9, 2018.

10102. Non-Waiver of the Exchange's Objects and Purposes

The submission of any matter to arbitration under the NASD Code of Arbitration Procedure shall in no way limit or preclude any right, action or determination by the Exchange which it would otherwise be authorized to adopt, administer or enforce. If any matter comes to the attention of an arbitrator during and in connection with the arbitrator's participation in a proceeding, either from the record of the proceeding or from material or communications related to the proceeding, that the arbitrator has reason to believe may constitute a violation of the Rules of the Exchange or the federal securities laws, the arbitrator may initiate a referral of the matter to the Exchange for disciplinary investigation; provided, however, that any such referral should only be initiated by an arbitrator after the matter before him has been settled or otherwise disposed of, or after an award finally disposing of the matter has been rendered pursuant to the NASD Code of Arbitration Procedure.

Amended Oct. 9, 2018 (SR-BX-2018-048), operative Nov. 9, 2018.

 
home_footer_links
Copyright_statement
App Store       Google Play       Listing Center Content RSS Feed
The Nasdaq Stock Market, Nasdaq, The Nasdaq Global Select Market, The Nasdaq Global Market, The Nasdaq Capital Market, ExACT and Exchange Analysis and Compliance Tracking system are trademarks of Nasdaq, Inc.
FINRA® and Financial Industry Regulatory Authority, Inc.® are registered trademarks of Financial Industry Regulatory Authority, Inc. OTCBBTM and OTC Bulletin BoardTM are trademarks of FINRA