Rules Prohibiting Brokers from Dealing on or Otherwise Buying or Selling Securities of Listed Companies Where any of its Stockholders, Directors, Officers or Employees are also Directors or Officers of Such Listed Companies

January 18, 1978RULES PROHIBITING BROKERS FROM DEALING ON OR OTHERWISE BUYING OR SELLING SECURITIES OF LISTED COMPANIES WHERE ANY OF ITS STOCKHOLDERS, DIRECTORS, OFFICERS OR EMPLOYEES ARE ALSO DIRECTORS OR OFFICERS OF SUCH LISTED COMPANIESWHEREAS, the relationship or close linkage between stockbroker or dealer on the one hand, and officer/director of issuer corporation on the other, may involve possibilities of conflict of interest and obligations, thereby causing erosion of the faith and confidence, if not the interest, of the investing public; cdrepWHEREAS, the existence of such relationship or linkage provides access, directly or indirectly, to corporate information such that it can reasonably be foreseen that such linkage can give rise to the inherent unfairness where a partner, officer, director, employee of a stockbroker or dealer, sitting as director or officer of the listed company takes advantage of inside information knowing such information is unavailable to those with whom they will deal;WHEREAS, the promotion of sound and fair trading in securities and the protection of the interest of the investing public are of primary concern to...