Replies to post #69320 on CMKM Diamonds Inc (fka CMKX)

[fung_derf]

howdy.....I don't understand what that term means? It sounds like a gray sheet stock though.
The only non qualified piggybacking I remember was done by the big bad wolf, and the piggy lived in a house made out of straw.

[Stks_Not_Toys]

Hi Howdy- If I believe that post, then I know for sure that I'm Marilyn Monroe!

[kennedy]

howdy..MM's can't profit on CMKX?? Let's see..I some awhile back at .0004..When it was filled it fetched .00041. Neither I or you can buy at that extra fractional cost, you know why?
It's because a MM took the .0004 bid and raised his to .00041 so he would be first in line to grab every sell at .0004.

Guess what he did then..He sold at .0005 to the retail market.
I believe that's a profit..

[let it ride]

and we all know that everyone in this industry play by the rules and there is no coruption

[Jim Bishop]

howdy, re non qualifying piggyback. Normally if a stock is non qualifying it is so noted on the quote page at Pinksheets.com and betapinksheets.com, note that new beta site is huge, with a ton of info at it.

I have so far been unable to confirm online that CMKX is non qualifying, nor have I been able to find where MM's cannot go long or short in their own accounts, with the possible exception of what is in bold below.

Anyone interested in more info can wade through some of this and the links.

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PIGGY-BACK RULE and PIGGY-BACK EXCEPTIONS

Piggy-Back Rule
A "piggyback qualified" security is one that meets the frequency-of-quotation requirement described in SEC Rule 15c2-11(f)(3). The frequency-of-quotation test or "piggyback" exception is based on whether a broker/dealer has itself published quotations in the security in the applicable interdealer quotation system on at least 12 business days during the preceding 30 calendar days, with not more than four consecutive business days without quotations. Once this criteria has been satisfied, authorized participants may register on-line in a security. As long as the security remains piggyback qualified, any participant may quote the security without a Form 211 </otcquide/form211.pdf> submission.
http://beta.pinksheets.com/glossary.jsp


Piggy-Back Rule
This means that the security is piggyback eligible under SEC Rule 15c2-11 and thus market makers can start quoting it immediately without having to file a 15c2-11. Yes, it applies to the OTC Dealer.
http://www.pinksheets.com/glossary.jsp

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EXAMPLE OF "NOT PIGGYBACK QUALIFIED:
PWCHF -- Power Chips Plc.
Ord
Primary Venue: Pink Sheets <../glossary.jsp>
REAL-TIME PINK SHEETS INSIDE QUOTE AND LEVEL II MONTAGE
Not PiggyBack Qualified <http://www.pinksheets.com/glossary.jsp>
Real time as of Aug 8, 2004 12:36:11 PM ; click "Refresh <javascript:location.reload()>" for current price.
http://www.pinksheets.com/quote/quote.jsp?symbol=PWCHF

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PIGGY - BACK EXCEPTIONS:

http://beta.pinksheets.com/otcguide/brokers_index.jsp

211 Exceptions
Before an equity issue can be quoted, a market maker should first determine if it is eligible for one of the following exceptions under SEC Rule 15c2-11:

The security is currently listed on a US exchange or Nasdaq.
The brokerage firm wishes to submit an unsolicited quote. An unsolicited quote represents a customer order and not a market maker's own position and must be removed from the system once the customer order is executed. See Unsolicited Quotes below for more information and the application form for entering unsolicited quotes in Pink Sheets' Electronic Quotation Service.

The security is piggyback eligible. A security becomes piggyback eligible when it has been quoted on the Pink Sheets by at least one market maker for a minimum of 30 days. Piggy back eligible securities are identified on pinksheets.com with the text "Piggyback Qualified" and on the OTC Dealer as "PBQ".
The "Globenet Exemption <globenet.pdf>." Under this exemption, a market maker that has been quoting a security for at least 30 days in the OTCBB can initiate a quotation on the Pink Sheets without submitting a Form 211 to the NASD subject to the following conditions:

Each broker or dealer relying upon this exemption must have in its records information specified in paragraphs (a)(5)(i), (a)(5)(viii), (a)(5)(xiv), (a)(5)(xv), and (a)(5)(xvi) of Rule 15c2-11;

Two-way bid and ask priced quotations that do not reflect customer indications of interest must have been published during the previous 30 calendar days, with no more than four business days in succession without such quotations, in an interdealer quotation system that displays unsolicited customer indications of interest;

The issuer of the security has not been delinquent in any of its reporting obligations under the Exchange Act or rules thereunder for more than 30 days, if subject to Section 10(a) or 15(d) of the Exchange Act;

Since the issuer of the security filed its most recent annual report, the issuer has not filed a report with respect to any event included in Item 1 (Changes in Control of Registrant), Item 2 (Acquisition or Disposition of Assets), Item 3 (Bankruptcy or Receivership) Item 4 (Changes in Registrant's Certifying Accountant), or Item 6 (Resignation of Registrant's Directors) of Form 8-K under the Exchange Act;
The issuer of the security is not exempt from the registration requirements under Section 12(g) of the Exchange Act pursuant to Rule 12g3-2(b); and
The issuer of the security is not the subject of bankruptcy proceedings.

Unsolicited Quotes

An exception to Rule 15c2-11 exists for Unsolicted Customer Orders. To avail itself of this exception, an NASD member firm must ensure that the quotation published or submitted: (1) is solely on behalf of a customer; (2) represents the customer's indication of interest; and (3) does not involve the solicitation of the customer's interest.

A broker and/or dealer is not a customer for the purposes of this rule. If a NASD member does publish a quotation on behalf of another dealer, including a non-NASD member dealer, the order must represent an unsolicited customer order. To demonstrate compliance with this exception, an NASD member publishing or submitting for publication a quotation representing an unsolicited customer order will be required to produce documentation to the NASD demonstrating its knowledge that the underlying order was unsolicited and entered on behalf of a customer. A NASD member may seek to comply with this exception by obtaining the name of the individual at the other dealer that informed it that the order was an unsolicited customer order and the date and time of such conversation. Both the NASD member and the other dealer are required, pursuant to NASD and SEC rules, to create and maintain a memorandum of such customer order regardless of whether the order is ultimately executed.

To enter an un-solicited quote in the Electronic Quotation Service for a security that is new to the Pink Sheets, a broker must complete the Unsolicited Quote Entry Form below. If the security is already quoted on the Pink Sheets, subscribers may enter an unsolicited quote through the Dealer.
Unsolicited Quote Entry Form <unsolicited_form.pdf> (pdf)

About Quotes Submitted to the Pink Sheets

Pink Sheets market maker quotation listing privileges are only available to SEC registered broker/dealers, which are regulated by the SEC and the NASD.
Quotes are considered to be firm during market hours when a market maker has affirmatively opened its markets.
The following types of quotes may be entered: 2-sided, one-sided, unpriced, bid wanted, offer wanted, and unsolicited.
Quote sizes must conform to the minimum quote size requirements in NASD Rule 6750.
Limit Order Protection does not apply to securities that are quoted solely on the Pink Sheets.

http://beta.pinksheets.com/otcguide/brokers_211.jsp