Under the rule. On the New York Stock Exchange when a member of the exchange fails to
receive or deliver stock, accordingly as he has bought or sold, the stock in question is bought or
sold, as the case may be, by the chairman of the exchange for the account of the delinquent
member, who is charged with any difference in price.
Uncompleted transactions of failed members are closed under the rule. Disputes frequently result
in sales or purchases under the rule, the final settlement of the matter being determined by the
proper committee of the exchange.