1. (1) It shall constitute a “Fraudulent, Deceptive, or Manipulative Act or Practice,” as used in these rules, for any broker-dealer to effect any transaction in, or induce or attempt to induce the purchase or sale of any security by making a fictitious quotation.

2. (2) It shall constitute an attempt to induce the purchase or sale of a security by making a “Fictitious Quotation,” within the meaning of these rules, for any broker-dealer to furnish or submit, directly or indirectly, any quotation for a security to an inter-dealer-quotation system, unless:

   1. (a) The inter-dealer-quotation system is informed, if such is the case, that the quotation is furnished or submitted:

      1. (A) By a correspondent broker-dealer for the account or in behalf of another broker-dealer and, if so, the identity of such other broker-dealer; and/or
      2. (B) In furtherance of one or more other arrangements (including a joint account, guarantee of profit, guarantee against loss, commission, markup, markdown, indication of interest and accommodation arrangement) between or among broker-dealers and, if so, the identity of each broker-dealer participating in any such arrangement or arrangements; provided, however, that the provisions of this subparagraph shall not apply if only one of the broker-dealers participating in any such arrangement or arrangements furnishes or submits a quotation with respect to the security to an inter-dealer-quotation system.
   2. (b) The inter-dealer-quotation system to which the quotation is furnished or submitted makes it a general practice to disclose with each published quotation, by appropriate symbol or otherwise, the category or categories (paragraphs (2)(a)(A) and/or (B) of this rule) in furtherance of which the quotation is submitted, and the identities of all other broker-dealers referred to in paragraphs (2)(a)(A) and (B) of this rule where such information is supplied to the inter-dealer-quotation system under the provisions of subsection (2)(a) of this rule.
3. (3) It shall constitute an attempt to induce the purchase or sale of a security by making a “Fictitious Quotation,” within the meaning of these rules, for a broker-dealer to enter into any correspondent or other arrangement (including a joint account, guarantee of profit, guarantee against loss, commission, markup, markdown, indication of interest and accommodation arrangement) in furtherance of which two or more broker-dealers furnish or submit quotations with respect to a particular security, unless such broker-dealer informs all broker-dealers furnishing or submitting such quotations of the existence of such correspondent and other arrangements and the identity of the parties thereto.

4. (4) For purposes of this rule:

   1. (a) The term “Inter-Dealer-Quotation System” shall mean any system of general circulation to broker-dealers in Oregon which regularly disseminates quotations of identified broker-dealers, but shall not include a quotation sheet prepared and distributed by a broker-dealer in the regular course of his business and containing only quotations of such broker-dealer;
   2. (b) The term “Quotation” shall mean any bid or offer, or any indication of interest (such as OW or BW) in any bid or offer;
   3. (c) The term “Correspondent” shall mean a broker-dealer who has a direct line of communication to another broker-dealer located in a different city or geographic area.

Statutory/Other Authority

ORS 59

Statutes/Other Implemented

ORS 59.205(2)

History

CC 12-1973, f. 7-12-73, ef. 9-1-73, Renumbered from 815-030-0205, 815-030-0155