Just received this e-mail from E-Trade:
E*TRADE
Updated SEC rules for over-the-counter securities
As you may know, on Tuesday, September 28, 2021, new regulatory requirements take effect that will impact the market for, and value of, certain OTC securities classified as "Pink No Information," "Grey Market," and "Expert Market" OTC securities.
These rule changes prohibit broker-dealers, like E*TRADE, from publishing bid/ask quotations of companies that fail to publicly report and keep current financial and other company information. The changes also require that traders attest that they are not affiliates, control persons, or insiders—and that their trades are unsolicited—before they can submit orders in such securities.
Because you have one or more open orders in securities affected by these requirements, we wanted to make sure you were aware of the following important dates:
Friday, September 17, 2021: All GTC orders to open positions in Pink No Information, Grey Market, and Expert Market OTC securities will be canceled. Monday, September 27, 2021: All GTC orders to close positions in Pink No Information, Pink Limited Information, Grey Market, and Expert Market OTC securities entered on or before September 17, 2021 will be canceled. You can then re-enter your closing orders using an updated order entry ticket, which will then ask you to attest that you are not an affiliate, control person, or insider, and that your order is unsolicited. The order entry ticket will be updated with the new prompts on September 18, 2021.
Note: As a reminder, as of August 27, 2021, no opening orders in Pink No Information, Grey Market, and Expert Market OTC securities are allowed, as it may become more difficult to liquidate such positions.
Please visit OTC Markets Group's website to see if any OTC securities you hold are currently categorized as Pink No Information, Pink Limited Information, Grey Market, or Expert Market securities.¹
See the links below for more information about these changes and how they might affect you:
Understand the SEC amendments for OTC securities Learn more about quotations for OTC securities
As always, thank you for choosing E*TRADE. It is our privilege to serve you.
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FAQs
E*TRADE Securities LLC is located at 200 Hudson Street, Suite 501, Jersey City, NJ 07311.
1. OTC Markets Group is a third-party financial market that provides information for OTC securities. E*TRADE is not liable for the accuracy, errors, or omissions of third-party resources such as OTC Markets Group.
This is not an offer to sell or a solicitation of an offer to buy securities, products, or services by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.
Securities products and services are offered by E*TRADE Securities LLC, Member SIPC.
© 2021 E*TRADE Financial Holdings, LLC, a business of Morgan Stanley.
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