Discovery Minerals LTD (DSCR)

[JOHNNIEBG]

Piggyback Exception

The Amendment modifies the provisions of the piggyback exception, which allows a broker-dealer to rely on the existing quotations of another broker-dealer that initially complied with the information review requirement of the Rule. The SEC amended this provision primarily to prevent broker-dealers from continuing to publish quotations for issuers that do not make current information publicly available.

The Amendment provides that a broker-dealer may rely on the piggyback exception based on at least a one-way priced quotation so long as there has been a quotation for the security in the four preceding business days. It also requires that issuer information be current and publicly available, timely filed, or filed within 180 calendar days from a specified period. However, the Amendment prohibits reliance on the exception by shell companies for a specified period and by issuers that have been subject to a trading suspension order issued by the SEC until 60 days after the expiration of such order.

The piggyback exception provides a limited, conditional grace period to permit broker-dealers to continue to rely on the piggyback exception to publish quotations for an issuer whose Rule 15c2-11(b) information is no longer current and publicly available, timely filed, or filed within 180 calendar days from a specified period. Subject to certain conditions, this limited grace period permits broker-dealers to continue quoting securities for a period of up to 15 calendar days once a qualified IDQS or registered national securities association makes a publicly available determination that issuer information is no longer current and publicly available.

The following table provides a summary of the time frames for which certain Rule 15c2-11(b) information must be current and publicly available, timely filed, or filed within 180 calendar days of a specified period.