What is the Piggy Back Rule?
The phrase “piggyback qualified” refers to a stock for a public company that has already had a Form 211 filed by a FINRA registered market maker, and meets the “frequency-of-quotation” requirement under SEC Rule 15c2-11(f)(3).
This frequency-of-quotation test is passed when a broker/dealer publishes quotations in the stock in the appropriate interdealer quotation system for a minimum of Twelve (12) Business days during the preceding Thirty (30) calendar days. Also, during that time, there can be no greater than Four (4) consecutive business days without published quotations in the stock.
After this criteria has been satisfied, the stock is known as “piggyback qualified” and other market makers may publish quotations in the stock without filing their own Form 211.