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On September 28, 2021, the Securities and Exchange Commission (SEC) enacted amendments to Rule 15c2-11, marking a significant shift in the process and requirements for publicly quoting a company’s stock on the markets.

Understanding Rule 15c2-11

Rule 15c2-11 serves as a regulatory framework governing the quoting of over-the-counter (OTC) securities by brokers. It stipulates the conditions under which brokers can submit or publish bids and offers for these securities on trading systems such as the OTC Link ATS. Importantly, the rule focuses on the dissemination of quotations rather than the underlying transactions or investors’ ability to buy or sell securities.

Impact of the Amendments

The amended Rule introduces stricter requirements regarding the availability of current information about issuers. This means that for a security to be initially quoted and maintain its quoted status, up-to-date issuer information must be publicly accessible. While the amendments still permit unsolicited quotations, insiders and affiliates face additional compliance measures.

By rbcrown