Replies to post #32905 on Mindpix Corp. (fka MPIX)

[pitts77h]

No, that's not at all what it means in this case.

Piggybacking is when a broker copies it's clients trade

He was asking specifically about the “piggyback” exception of Exchange Act Rule 15c2-11(f)(3). It has to do with when broker-dealers are allowed, or not allowed, to publish quotes in OTC stocks.

Here's an official SEC explanation:

https://www.sec.gov/rules/exorders/2016/34-79360.pdf

Rule 15c2-11, with certain exceptions, requires that a broker-dealer that publishes or submits for publication quotations for OTC Securities in a quotation medium gather, review, and preserve certain specified information and have a reasonable basis under the circumstances for believing that the information is accurate in all material respects and was obtained from reliable sources.

Rule 15c2-11 includes an exception to the rule’s requirements — the “piggyback” exception — for when a broker-dealer publishes, in an IDQS that specifically identifies as such unsolicited customer indications of interest, a quotation for an OTC Security that was already the subject of regular and frequent quotations in compliance with rule 15c2-11(f)(3)(i).

For this piggyback exception to apply, the security must have been the subject of quotations (exclusive of any identified customer interests) in the IDQS on each of at least 12 days within the previous 30 calendar days, with no more than 4 business days in succession without a quotation.

Thus, if a publication or submission for publication of a quotation for an OTC Security meets all of the requirements of this exception, a broker-dealer can “piggyback” on either its own or other broker-dealers’ previously published quotations in an IDQS.

In English, this means that when the SEC suspends a scam POS stock (like this one)the stock isn't going to be quoted for 30 days, and therefore the piggyback exemption is no longer available to broker-dealers.

It means this POS will never trade again.