Free Request for Judicial Notice - District Court of California - California

Case 3:08-cv-03141-WHA

Document 25

Filed 07/07/2008

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GEORGE L. GUERR, CASB No. 158263 FOWLER WHITE BOGGS BANKER P.A. 501 E. Kennedy Blvd., Suite 1700
Tampa, Florida 33602
Tel: (813) 228-7411

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Fax: (813) 229-8313 Email: george.guerraêfowlerwhite.com

Attorney for Defendant

6 DOUGLAS GREEN

UNITED STATES DISTRICT COURT
CIVIL DIVISION

7 NORTHERN DISTRICT OF CALIFORNIA
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PERSHING LLC,

) CASE NO. CV-08-3141 WHA
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Plaintiff,
vs.

) REQUEST FOR JUDICIAL NOTICE
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CROCKER SECURITIES LLC and DOUGLAS GREEN,
Defendants.

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Defendant DOUGLAS GREEN respectfully requests that this honorable Court take

judicial notice of the FINRA rules generally and specifically, Rule 2110 and Rule 13000,
attached hereto as Exhibit A.

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20 Dated this 7th day of July, 2008.
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sf George L. Guerra, Esg. George L. Guerra FOWLER WHITE BOGGS BANKER P.A. Attorney for Defendant

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Request for Judicial Notice 3:08-cv-03141 WHA

Case 3:08-cv-03141-WHA

Document 25-2

Filed 07/07/2008

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Location: NASJ2 :. MilJJ-,:!! :. Rllles of the AssociatjQ!i :. Q.Q!QlJJ:lRules (49JlO-30001 :. 2000. BlJ.§ness Qpnduct :. 21 OO£eDeralltÇllJçl~çls :. 2110. Standards of Commercial Honor and Principles of Trade

2110. Standards of Commercial Honor and Principles of Trade
A member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of

trade.

Cross ReferencesfM:JOOQ:t Filng of Misleading Information as to Membership or Registration
IM-1000-3, Failure to Register Personnel 2790. Restrictions on the Purchase and Sale of Inital Equity Public Offerings IM-2110-2, Trading Ahead of Customer Limit Order IM-2110-3, Front Running Policy IM-2.23Q, "Third Market" Confirmations IM-2310-2. Fair Dealing with Customers IM-2440. Mark-Up Policy IM-2830-1. "Breakpoint" Sales IM-3310. Manipulative and Deceptive Quotations
LM:_3~2Q, Firmness of Quotations

fM-1 01 OQ, Failure to Act Under Provisions of Code of Arbitration Procedure

IM-11110, Refusal to Abide by Rulings of the Committee
Amended by SR-NASD-2005-087 eff. Aug. 1, 2006

Selected SEC Decisions:
Albert P. Fosha, SEC Rei' No. 34-22815 (1986). C. Brock Lippitt, Thomas M. Svalberg and Gerald B. Fitzgerald, SEC Rei' No. 34-23495 (1986). Robert J. Jautz, SEC Rei' No. 34-24346 (1987). Robert S.C. Peterson, Inc. and Robert S.C. Peterson, SEC Rei' No. 34-24688 (1987). Rita Delaney, SEC Rei' No. 34-25119 (1987). Gary D. Cohee, SEC Rei' No. 34-25210 (1987). Traiger Energy Investments and Michael A. Traiger, SEC Rei' No. 34-25306 (1988). E.F. Hutton & Co., Inc. (n/k/a) Shearson Lehman Hutton, Inc., SEC Rei' No. 34-25587 (1988). Stephen M. Carter, SEC Rei' No. 34-26264 (1988). Cosse International Securities, Inc. and Charles B. Cosse, SEC Rei' No. 34-26424 (1989). L.C. Thomas and Stephen V. Wallace, SEC Rei' No. 34-26530 (1989). Stanley D. Gardenswart, SEC Rei' No. 34-27194 (1989). Walter Capital Corp. and Frank R. Grilo, SEC Rei' No. 34-27536 (1989).
Selected Notices: 96-44.

IM-2110-1. Reserved

IM-2110-2. Trading Ahead of Customer Limit Order
Amendments to this rule have been approved, but the effective date has not yet been announced. To view this version of

the rule click the "Approved Rule Changes, Effective Date Pending" tab to the right.
(a) General Application
To continue to ensure investor protection and enhance market quality, NASD's Board of Governors is issuing an interpretation to NASD Rules dealing with member firms' treatment of their customer limit orders in exchange-listed securities. This interpretation, which is applicable from 9:30 a.m. to 6:30 p.m. Eastern Time, will require members to handle their customer limit orders with all due care so that members do not "trade ahead" of those limit orders. Thus, members that handle customer limit orders, whether received from their own customers or from another member, are prohibited from trading at prices equal or superior to that of the limit order without executing the limit order. In the interests of investor protection, NASD is eliminating the so-called disclosure "safe harbor" previously established for members that fully disclosed to their customers the practice of trading ahead of a customer limit order by a market-making firm.1
Rule 2110 states that:

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Case 3:08-cv-03141-WHA

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Location: f\~Sl :. Manual :. Rules of ttLELAssociatiQ!i:' PJQ.ceçll!mLRules (80.00-14000) :. 1~9!2Q.,N~S.Q,Q9de of Arbitration Procedure

for Industry Disputes :. Part I Interpre,tive MateriaL, Definitions, Organization, and Authority:. IM-13000. Failure to Act Under Provisions of

Code of Arbitration Procedure for Industry Disputes

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IM-13000. Failure to Act Under Provisions of Code of Arbitration Procedure for Industry Disputes
The Industry Code will apply to claims filed on or after April

.I~.-'Noti~~s
link) L~ (1

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16, 2007. In addition, the list selection provisions of

the Industry Code wil apply to previously filed claims in which a list of arbitrators must be generated after April 16,2007; in these cases, however, the claim will continue to be governed by the remaining provisions of the old Code unless all parties agree to proceed under the new code.
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 Code as required by the Code; (b) fail to comply with any injunctive order issued pursuant to the Code;

Code;

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

(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 NASD, the New York, American, Boston,

Cincinnati, Chicago, or Philadelphia Stock Exchanges, the Pacific Exchange, Inc., 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 NASD

All awards shall be honored by a cash payment to the prevailng party of the exact dollar amount stated in the

award. Awards may not be honored by crediting the prevailng 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.
It may be deemed conduct inconsistent with just and equitable principles of trade and a violation of Ry&;211 0 for a member to require associated persons to waive the arbitration of disputes contrary to the provisions of the Code of

Arbitration Procedure.
Amended by SR-NASD-2007-026 eff. April

16, 2007.

Adopted by SR-NASD-2004-011 eff. April 16, 2007.
Selected Notice: 07-07

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(92008 FINRA. All rights reserved.

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