Reminder Regarding Giving and Receiving of Gratuities

As a reminder, Rule 508 (“Giving and Receiving of Gratuities”) prohibits members, member firms, broker associations, trading groups and employees of these individuals and entities from giving gifts or gratuities in excess of $100 per year to any employee of another member, member firm, broker association or trading group.  This rule is substantially similar to the restrictions imposed by the National Association of Securities Dealers (“NASD”) and the New York Stock Exchange (“NYSE”). 

The text of Rule 508 is reprinted below:

508.            GIVING AND RECEIVING OF GRATUITIES

A member, member firm, broker association, trading group or an employee of any of the foregoing may not give, directly or indirectly, to any employee of another member, member firm, broker association or trading group any gratuities or gifts with an aggregate market value in excess of $100 within any twelve-month period.

This rule applies notwithstanding any internal policy of an entity that allows for gifts in excess of $100.  The requirements of this rule apply to both the providers and the recipients of such gifts and gratuities.

Questions regarding this advisory may be directed to the following individuals in Market Regulation:

Robert Sniegowski, Associate Director, 312.341.5991

Joseph Adamczyk, Director and Enforcement Counsel, 312.435.3581

Dean Payton, Managing Director & Chief Regulatory Officer, 312.435.3658