A Small Voice In Cyberspace

[Georgia Bard]

A MUST READ! FROM THE NASD-

In 2003,(1st quarter) a new market, the Bulletin Board ExchangeSM (BBXSM), will be launched. The BBX will eventually take the place of the OTC Bulletin Board ® (OTCBB), which will be phased out. The BBX will appeal to many of the same companies that are currently quoted on the OTCBB, but will be a higher quality market.

The BBX will offer a significant improvement over the OTCBB for qualifying small companies by increasing liquidity in the market for their securities, augmenting the opportunity to raise equity capital, and conferring the recognition of trading on a listed market.

Other advantages to being a BBX-listed company include access to a Corporate Communications Director, who will be responsible for answering questions and providing information on TRADING ACTIVITY in individual securities and the marketplace as a whole. This individual attention will be supplemented by newsletters, an informational Web site, and periodic informational seminars and other training opportunities.

Three important Nasdaq rules that will apply to the BBX going forward are: 1) market makers will be required to maintain continuous, two-sided markets, with quotes that are reasonably related to the market and that generally do not lock or cross the market, 2) BBX market makers will be REQUIRED TO REPORT THEIR SHORT INTEREST (congrats all that helped to make a difference!) on a monthly basis, as market makers in Nasdaq National Market ® (NNM®) and SmallCap stocks do today, and 3) the BBX proposes to adopt the same trade halt rule that currently applies to NNM and SmallCap issues. This provides BBX with broader authority consistent with its new relationship with BBX issuers.


Nasdaq will provide the same level of intra-day SURVEILLANCE for the BBX as is currently available for Nasdaq issues. Nasdaq MarketWatch, TradeWatch, and NASDR Market Regulation will monitor for the following:
-Issuer news that warrants a news-related Trade Halt;
-Backing away;
-Excused withdrawals from the market, locked/crossed markets and trading during trading halts;
-Best execution obligations;
-MARKING-THE-CLOSE ACTIVITY;
-Anti-competitive practices by market makers;
-Front-running of research;
-Short interest reporting; and
-Insider trading.


Dear OTCBB Market Makers:
As you may be aware, the OTC Bulletin BoardSM (OTCBBSM), which is operated by The Nasdaq Stock Market, Inc., will be phased out in 2003 as we launch a new market, the Bulletin Board ExchangeSM (BBXSM). We expect most OTCBB companies will apply to list on the BBX. The BBX will have an electronic trading system with both auto-execution and order-delivery capabilities. These changes are contingent on expected approval by the SEC.

We are sending the enclosed letter to all OTCBB companies to inform them of the upcoming change. We will be sending you more complete information about the new BBX market in the near future, but if you would like more information now, please contact Liz Heese, OTCBB/BBX Product Manager, at [phone], or [e-mail]; or Staci Warden, BBX Director, at [phone], or [e-mail].

Frequently Asked Questions

When will the BBX launch?
The BBX is scheduled to launch in the first quarter on 2003, pending approval by the Securities and Exchange Commission (SEC).

What will happen to the OTC Bulletin Board?

The current OTC Bulletin Board (OTCBB) will eventually be replaced by the BBX. To ensure a smooth transition to a listed-market environment for OTCBB companies, Nasdaq will continue to operate the OTCBB for the first six months after the BBX launches. This will give OTCBB companies ample time to list on the BBX without experiencing a break in OTCBB trading activity.

What will happen to OTCBB issuers that don't list on the BBX?
If an OTCBB issuer elects not to list on either the BBX or a national securities exchange, its shares can still trade through informal, over-the-counter methods. For example, market makers may choose to move their quotes in that security to the PinkSheets.

How does a company list on the BBX?
Listing applications will be available in July 2002. They will be mailed to all OTCBB issuers and posted to this website as soon as they are available.

What are the listing qualifications for BBX?
The BBX listing requirements have been created to provide an opportunity for the largest number of current OTCBB issuers to continue trading in the new listed environment, while at the same time offering a full complement of qualitative standards to provide enhanced protection to investors. Under these listing requirements, companies must meet qualitative standards, but do not have to meet financial or minimum share price standards. Specifically, the BBX will impose:



Public interest standards identical to those currently utilized for Nasdaq National Market (NNM) and SmallCap market, which will provide the BBX with the discretion to deny listing or de-list an issuer for the purpose of protecting investors and the integrity of the market;
A requirement of 100 round-lot shareholders and 200,000 shares in the public float; and
Corporate governance standards consistent with those imposed by the NNM and SmallCap markets, with an adjustment to the independent director and audit committee requirements in recognition of the difficulty small companies may have meeting these requirements.
Click here for a complete list of the proposed BBX listing standards.


What are the BBX listing fees?
All applicants will be required to pay a non-refundable application fee. For a complete list of BBX issuer fees, click the link below.



BBX Issuer Fees

When can I reserve my company's new BBX trading symbol?
Trading symbols may be requested at the time a listing application is submitted to the BBX. Symbols will be assigned on a first-come-first-serve basis. The BBX will not reserve trading symbols except in conjunction with an application. For a description of the BBX trading symbol convention, click here.


Will banks be required to file with the SEC?
Yes. Banks will have to meet the same listing requirements as other issuers


How can I learn more about the BBX?
OTCBB issuers and other interested parties will be invited to attend an information forum to discuss the listing qualifications, the application process, and the BBX marketplace rules. BBX staff will be available to answer questions and provide more information. The forums will be held in the summer of 2002 in several locations around the country. Once it has been finalized, the forum schedule and agenda will be available on this web site.

General BBX questions and information requests can be addressed to:
Liz Heese, BBX Product Manager at [e-mail] or [phone] or
Staci Warden, BBX Director at [e-mail] or [phone].


"NO OWN - NO SELL" Petition:
http://www.petitiononline.com/NoShorts/petition.html
Proud To Be An American Against Terrorism & Its Propaganda!
:=) Gary Swancey