Do you know what amended Rule 15c2-11 is?
The SEC amended Exchange Act Rule 15c2-11, which is a crucial element of the over-the-counter (OTC) market regulatory system. The changes are intended to improve the rule, which was last considerably changed about thirty years ago, and to take into account developments in communications technology. Prior to actually posting quotations in OTC securities, broker-dealers must analyze current and information available to the public, according to the modified rule. To improve investor protection, the amendments also restrict some of the exemptions available under Rule 15c2-11 and add new exclusions for low-risk securities. Given the current rule’s timeliness and modifications, its practical implementation streamlines the process of small-cap companies going public. For firms accessing the OTCQB and OTCQX markets, OTC Markets Group can now undertake “Initial Reviews” under Rule 15c2-11, which is a replacement to the regular FINRA Form 211 process. The r...