Rager's Page

[Rager]

Manning for all OTC Securities Delayed Two-Months

Nov 27, 2007
Pink Sheets News Service

On November 26, 2007 the Securities and Exchange Commission issued its order approving a FINRA request to delay the effective date of its Manning Interpretation to include all OTC Equity Securities. Formerly, the effective date was November 26, 2007. The repeal of FINRA Rule 6541, which provides limit order protection for OTC Bulletin Board securities, is likewise delayed until January 14, 2008.

FINRA sought the delay to allow the SEC additional time to consider the proposed minimum price-improvement provision and to allow its members additional time to make necessary system changes to comply with those proposed standards. See SR-NASD-2007-41.

On January 14, 2008, the amended interpretation will include all OTC equity securities, which term is defined in NASD Rule 6610(d) to mean all non-exchange listed securities and certain exchange listed securities that do not otherwise qualify for real-time trade reporting. The only OTC equity securities on which there now exist Manning-like principles are those quoted on the OTC Bulletin Board. (See NASD Rule 6541.) By expanding the interpretation, Manning principles and all the interpretive guidance thereunder will also apply to those equity securities quoted on Pink Sheets as well as those traded in the grey market.

To view the SEC's order, visit www.sec.gov/rules/sro/finra/2007/34-56822.pdf. For further information about IM-2110-2 or Rule 6541, please contact us by email at < a href="mailto:[e-mail]">[e-mail], or contact Michael T. Dorsey, Esq., Managing Director, Trading Services & Compliance at 212-896-4456.