plaintiff does not claim that there is. Rather, he sues the NASD on a
common law tort theory. The absence of an implied federal cause of action
therefore is immaterial.
Finally, the NASD correctly points out that plaintiff has not exhausted
his administrative remedies before the Securities and Exchange
Commission, which is empowered to take action against self-regulatory
organizations including the NASD to ensure that they comply with their
own rules and the Exchange Act.*fn10 But plaintiff does not here claim
that the NASD violated its own rules or the Exchange Act. Moreover, he
seeks damages, a remedy not available to him under the provisions upon
which the NASD relies. In consequence, there is no merit to the NASD's
Finally, it is hornbook law that there is no stand-alone claim in New
York for punitive damages.*fn12 If plaintiff wishes to seek punitive
damages with respect to another count of the complaint, he may amend his
prayer for relief.
Accordingly, Schwab's motion to dismiss the fourth and sixth claims for
relief is granted in all respects. The NASD's motion to dismiss is
granted in all respects save that it is denied insofar as plaintiff
alleges that the NASD's procurement and disclosure of plaintiff's
allegedly sealed arrest record tortiously interfered with his prospective
economic relationship with Schwab.