October 28, 2020

Volume X, Number 302

Advertisement

October 28, 2020

Subscribe to Latest Legal News and Analysis

October 27, 2020

Subscribe to Latest Legal News and Analysis

October 26, 2020

Subscribe to Latest Legal News and Analysis

SEC Proposes to Amend Quotation Rule for OTC Securities

The Securities and Exchange Commission (SEC) has proposed to amend Rule 15c2-11, which governs the publication and submission of quotations by a broker-dealer in the over-the-counter (OTC) market. The proposed amendments would prohibit a broker-dealer from publishing quotes in a security not listed on a national securities exchange unless documents and information about the issuer are current and publicly available.

In addition, the proposed amendments would limit certain existing exceptions under Rule 15c2-11, including the piggyback exception and the unsolicited quotation exception, to circumstances in which documents and information about the issuer are current and publicly available. The proposed amendments also would limit the piggyback exception to circumstances in which, among other things, there are two-sided quotations that are published in an interdealer quotation system at specified prices.

The proposed amendments also would set forth new exceptions from the general requirements of Rule 15c2-11 under circumstances in which there is less concern regarding fraud and manipulation, including, for example, quotations for securities of well-capitalized issuers with actively traded securities. Similarly, the proposed amendments would provide an exception for quotations in which a qualified interdealer quotation system conducts a review of the issuer and makes known to others the quotation of a broker-dealer relying on the exception.

The proposed rule, including a complete description of the proposed changes to Rule 15c2-11, is available here.

©2020 Katten Muchin Rosenman LLPNational Law Review, Volume IX, Number 277
Advertisement

TRENDING LEGAL ANALYSIS

Advertisement
Advertisement

About this Author

James M. Brady, Katten Muchin Law Firm, Finance Attorney
Associate

James Brady concentrates his practice in financial services matters.

While in law school, James was an editor of the Michigan Journal of International Law. He also served as a judicial intern to the Honorable Stephen J. Markman of the Michigan Supreme Court. http://www.kattenlaw.com/James-Brady

312-902-5362
Michael T. Foley, Katten, Lawyer, Finance, FINRA, Chicago
Special Counsel

Michael Foley represents broker-dealers, investment advisers and other financial services industry participants with respect to a broad spectrum of legal and regulatory matters arising under the federal securities laws.

Michael has nearly 20 years of experience in private practice and in-house at both a large, full-service broker-dealer and at an online discount broker-dealer, advising broker-dealers and other financial institutions regarding compliance with the federal securities and commodities laws, and with the regulations of the US Securities and Exchange Commission, the US Commodity Futures Trading Commission and financial industry self-regulatory organizations. 

312-902-5452
Advertisement
Advertisement