DD Support Board and Research Team

[shajandr]

In your example, the entity was an SEC registered security. oTC Markets is not a registered security.

OTC Markets is also not an exchange as defined in the '34 Act.

So I do not see where the SEC has the authority over OTC Markets in any direct manner under either the '33 or '34 Acts that would place the OTCM under its jurisdiction for being able to veto OTCM's choice of what to name the tier that it has chosen to call the Expert Market.

If you think OTCM is an exchange under the '34 Act, please explain why and under what specific provision of the '34 Act.

I contend that OTCM is NOT an exchange. [e-mail] would be interested in any legal authority under which OTC Markets could be deemed an exchange. It is not.

Further, citing cases that relate to specific securities is orthogonal to the question I posed. OTCM is not a traded security. So any authority that the SEC has based on securities does not automatically inure to OTCM, which is neither a security nor an exchange. The is nothing unlawful about OTCM calling its tiers anything it wants to, at least as far as SEC regulations and legal authority.

Of course any person or entity can be sued by any governmental agency for nearly any claim, but for the suit to be meritorious the plaintiff (e.g., the SEC) has to show the specific law or regulation that was violated. I do no see how naming an OTCM tier as the Expert Market violates anything of which I am aware.

Can you tell me exactly which law(s) and/or regulation(s) and rule(s) that you think would provide authority and basis for the SEC to dictate what the OTCM can or cannot call its tier system?