Minimum Criteria Necessary for a Transaction to Qualify as Clearly Erroneous

What this video covers

• What makes a transaction clearly erroneous, including obvious errors in price, share count, unit of trading, security identification, or any other term
• Why the phrase “such as” makes the list of qualifying terms illustrative rather than closed
• How systemic problems and extraordinary events fit into the guidance, including events that have occurred or are ongoing
• Why systemic scale is generally focused on but is not a mandatory threshold, and how a material over-the-counter (OTC) market effect differs from a major marketplace disruption
• The three factors the Financial Industry Regulatory Authority (FINRA) weighs: circumstances at the time, a fair and orderly market, and protection of investors and the public interest
• Why a member’s simple assertion of an entry mistake may not be sufficient, and how responsibility includes entering the correct price and order type
• Why account intrusion falls under fraud rather than clearly erroneous authority, and why members must effectuate a final decision from a FINRA officer or Uniform Practice Code (UPC) Committee