That's the SEC Rule. As I said, the requisite form an MM must file is a Form 211.
PROCESSING 15C-211’S
< span style=”color: #000000;”>A Form 211 must submitted to the FINRA OTC Compliance Unit by a market maker to initiate or resume quotations in the OTC Markets or any other inter-dealer quotation medium pursuant to SEC Rule 15c2-11. Notably, it is the market maker that seeks to quote the securities of the issuer that must submit the Form 211 to FINRA and respond to comments. The essence of the Form 211 is to ensure that the market maker has completed satisfactory due diligence on the issuer to post quotations and make a market in the issuers securities. There is no standard time to process a 211 and clear the market maker to begin quoting a security on the OTC market. The time it takes to review a 211 may vary significantly depending on many factors, including whether or not FINRA has to request additional information from the market maker that submitted the form and how long it takes the market maker to respond to requests for additional information. The Form 211 review process is considered proprietary and thus, FINRA will only discuss details of the filing or review directly with the firm that submitted the Form 211. In addition to obtaining a copy of a current registration statement (if any) and the issuer’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q, a summary of the information requirements in a Form 211 includes:
The exact name of the issuer and its predecessor (if any);
The address of its principal executive offices;
The state of incorporation, if it is a corporation;
The exact title and class of the security;
The par or stated value of the security;
The number of shares or total amount of the securities outstanding as of the end of the issuer’s most recent fiscal year;
The name and address of the transfer agent;
The nature of the issuer’s business;
The nature of products or services offered;
The nature and extent of the issuer’s facilities;
The name of the chief executive officer and members of the board of directors;
The issuer’s most recent balance sheet and profit and loss and retained earnings statements;
Similar financial information for such part of the 2 preceding fiscal years as the issuer or its predecessor has been in existence;
Whether the broker or dealer or any associated person is affiliated, directly or indirectly with the issuer;
Whether the quotation is being published or submitted on behalf of any other broker or dealer and, if so, the name of such broker or dealer; and
Whether the quotation is being submitted or published directly or indirectly on behalf of the issuer, or any director, officer or any person, directly or indirectly the beneficial owner of more than 10 percent of the outstanding units or shares of any equity security of the issuer and, if so, the name of such person, and the basis for any exemption under the federal securities laws for any sales of such securities on behalf of such person.
FINRA AND DTC
AI
