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In September, the SEC published its final amendments to Exchange Act Rule 15c2-11, which governs the public quoting of securities traded on the OTCQX, OTCQB and Pink markets.
The Rule recognizes OTC Markets Group’s disclosure standards and the current, public disclosure provided by companies on our OTCQX and OTCQB markets and in our Pink Current market designation. Subject to certain limited exemptions, the Rule will restrict public quoting in companies that do not provide current public information. As a general matter, companies on the OTCQX, OTCQB, Pink Current and Pink Limited markets will still be eligible for continued public quoting. However, Amended Rule 15c2-11’s new requirements, including those for shell and other non-operational companies may impact companies on the OTCQB and Pink markets.
The amendments provide a new opportunity for us as a market operator to 1) streamline the on-boarding of new securities, 2) offer transparent trading for brokers, and 3) oversee ongoing issuer disclosure and compliance that is relied upon by investors, broker-dealers and regulators.
