FINRA & SEC Rules OTC Markets Group highly recommends market participants to become familiar with FINRA and SEC regulations that govern trading in securities quoted on the SEC-registered Alternative Trading System, OTC Link® ATS. The below list and the OTC Market Regulation reference document provide summaries of the applicable rules and regulations.
FINRA Rule 2010 – Standards of commercial honor and principles of trade Rule 2020 – Use of manipulative, deceptive or other fraudulent devices Rule 2100 – General standards Rule 4320 – Short sale delivery requirements Rule 4560 – Short interest reporting Rule 5210 – Publication of transactions and quotations Rule 5220 – Offers at stated prices IM–5220 – Firmness of quotations Rule 5250 – Payments for market making Rule 5310 – Best execution and Interpositioning Rule 5320 – Trading ahead of customer limit orders Rule 6431 – Recording of quotation information Rule 6432 – Submission of Rule 15c2–11 information on OTC equity securities Rule 6433 – Minimum quotation size requirements for OTC equity securities Rule 6440 – Trading and quotation halt in OTC equity securities Rule 6450 – Restrictions on Access Fees Rule 6460 – Display of Customer Limit Orders Rule 6490 – Processing of Company-Related Actions Rule 6600 – OTC equity reporting Rule 6620 – Transaction reporting Rule 7400 – Order Audit Trail System (OATS) SEC Section 3 – Definitions and applications Rule 3a38 – Definition of ‘Market Maker’ Rule 3a51–1 – Definition of Penny Stock Section 17B – Automated quotation systems for Penny Stocks Section 12 – Registration requirements for securities. Rule 12a–8 – Exemption of Depositary Shares Rule 12b–2 – Definitions (includes the definition of a Depositary Share) Rule 12d2–2 – Removal from listing and registration Rule 12g–1 – Exemption from Section 12(g) Rule 12g3–2 – Exemptions for American Depositary Receipts and certain foreign securities Rule 12g–4 – Certification of termination of registration Rule 12g5–1 – Definition of securities “Held of Record” Rule 12g5–2 – Definition of “Total Assets” Rule 12h–3 – Suspension of 15(d) reports Rule 12h–4 – Exemption from 15(d) reports Rule 12h–6 – Certification by a Foreign Private Issuer regarding the termination of registration of a class of securities under Section 12(g) or the duty to file reports under Section 13(a) or 15(d) Rule 15c2–11 – Initiation or resumption of quotations without specific information Rule 15g–2 – Risk disclosure document relating to the OTC Market Rule 15g–3 – Broker or dealer disclosure of quotations and other information relating to the OTC Market Rule 15g–5 – Disclosure of compensation of associated persons in connection with Penny Stock transactions Rule 15g–6 – Account Statements for Penny Stock customers Rule 15g–9 – Sales practice requirements for certain low–priced securities Rule 15g–100 – Schedule 15G: Information to be included in the document distributed pursuant to
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