Global Developments Inc (GDVM)

[Semperfiguy]

Everyone should make an effort to be better informed as to how the OTC process works. Below is some vital info on understanding who controls the review and approval of submissions by OTC companies. Most importantly the bolded portion. The broker-dealers who sponsor any ticker are not permitted to be compensated for doing so. Do you think they agree to sponsor and go through all of the effort out of the goodness of their heart? No, it is because they see an opportunity for manipulation which includes how fast and when they approve submissions.

https://www.bevilacquapllc.com/otc-markets-group-believes-finra-bring-rule-15c2-11-rule-6432-digital-age-hurt-capital-formation-small-issuers/

Rule 15c2-11 is meant to act as a disclosure rule and embody the famous quote by Justice Brandeis “sunlight is said to be the best of disinfectants; electric light the most efficient policemen” but it falls short. Rule 15c2-11 only requires broker-dealers to gather a lot of information about an issuer to prepare and file a Form 211, however, broker-dealers have no requirement to share that information with the investing public.

Rule 15c2-11 was introduced 45 years ago – that was before the internet existed and a time when investors and brokers often struggled to access company disclosure. Times have changed and so must the way this rule is administered.

FINRA’s involvement in the Form 211 process reaches beyond the scope of Rule 6432 and has become a practical impediment to small companies seeking to access secondary market liquidity. It routinely takes weeks or longer from the time of filing before a FINRA member firm may submit a quotation when in practice it should only take three (3) days.

The process of filing a Form 211 should be more transparent and efficient. The current regime does not make public markets more attractive to smaller companies.

Market operators do not have enough authority to initiate trading halts which is an issue since the market must be empowered to respond to indications of fraud in a timely manner.

FINRA Rule 5250 does not permit broker-dealers to accept compensation from issuers for the preparation and filing of a Form 211. You know what they say – you get what you pay for.

Only the sponsoring broker-dealer may publish quotations for the first thirty (30) days after a Form 211 is cleared instead of the preferred practice of allowing multiple market makers to quote a security immediately upon clearing a Form 211.