Public Policy Advocacy

Comment Letters & Government Testimony by OTC Markets Group on issues impacting our markets

Proposed Best Interest Contract Exemption, September 24, 2015
Comments submitted to the Department of Labor regarding the proposed Best Interest Contract Exemption (the “BIC Exemption”) that could prevent retirement investors from receiving advice on, purchasing or holding a wide variety of OTC equity securities that may be in their best interest to own. We advocate for expanding the definition of an “Asset” as defined in the proposed BIC Exemption to include qualifying OTC equity securities, specifically those traded on the highest levels of the OTC market, the OTCQX Best Market, as well as the OTCQB Venture Market.

Payment for Market Making, Proposed Amendments to FINRA Rule 6432, June 5, 2014
Comments submitted to the SEC related to rules that prohibit the receipt of payments from issuers to defray the considerable expense incurred by broker-dealers to comply with the information-gathering and review requirements of Rule 15c2-11, as well as the need to streamline the quotation process for ADR’s and foreign ordinaries of global companies listed on regulated foreign markets.

Proposed Amendments to Regulation A, March 24, 2014
Comments submitted to the SEC in support of the Proposed Rules, including the expansion of maximum offering size, bad actor disqualification, and Blue Sky preemption of offerings done under Tier 2 of Regulation A. See all comments: Comments on Proposed Rule Amendments for Small and Additional Issues Exemptions Under Section 3(b) of the Securities Act

Regulation D Comment Letter, September 23, 2013
Comments submitted to the SEC related to the “Advance Form D” requirement, the benefits of publicly available adequate current information regarding companies engaging in private offerings, and the SEC’s decision to immediately impose restrictions on general solicitation and advertising in Rule 506(c) offerings.

Regulation SCI Comment Letter, September 13, 2013
Comments submitted to the SEC related to the proposed Regulation SCI. Reg. SCI would institute a host of regulatory requirements, however the regulation still offers no solutions for the recent market events that spurred its creation. The SEC should focus on having trading procedures and processes that allow our markets to fail gracefully, restart quickly and rollback easily.

OTC Markets Group Testimony on Reducing Barriers to Capital Formation, June 12, 2013
Testimony of R. Cromwell Coulson, President and CEO of OTC Markets Group Inc. Before the Subcommittee on Capital Markets and Government Sponsored Enterprises Committee on Financial Services Hearing Entitled "Reducing Barriers to Capital Formation.

13(f) Comment Letter, April 30, 2013
Comments submitted to the SEC on the petition for rulemaking under Section 13(f). Our comments focus on expanding the scope of 13(f) reporting to include all non-SEC reporting OTC equity securities traded on the OTCQX, OTCQB, and OTC Pink marketplaces.

Comment Letter to SEC, February 1, 2013
Comments submitted to the SEC related to providing information on small and emerging company issues.

JOBS Act Comment Letter – July 9, 2012
Comments submitted to the SEC related to Section 201 of the Jumpstart our Business Startups (“JOBS”) Act. These comments focus on rulemaking related to general solicitation and advertising, focusing on the valuable role of publicly available price information in securities for which general solicitation and advertising is permitted.

Written Testimony to the SEC’s Advisory Committee on Small and Emerging Companies – January 4, 2012
Written comments to the SEC’s Advisory Committee on Small and Emerging Companies in support of removing the ban on general solicitation in certain private offerings of securities.

Tier Size Comment Letter – December 29, 2011
Tier Size Comment Letter – November 10, 2011
These letters are in response to a recent FINRA rule proposal. The OTC market currently operates under “tier size” rules that dictate that an order or quote must be displayed to the market if it is for a certain amount of shares. The amount of shares required varies based on the price of each share. FINRA’s recent proposal would, for most share price tiers, reduce the amount of shares necessary for an order or quote to be displayed.

OTC Markets Group Written Testimony to Senate Committee on Banking, Housing, and Urban Affairs - December 8, 2011
Written testimony to the Senate Committee on Banking, Housing, and Urban Affairs, regarding small company capital formation and market structure issues.

Rule 6183 & 6625 Comment Letter – October 20, 2011
Letter regarding a proposed trade reporting exemption for qualifying ATSs. We support the exemption, but believe it is unnecessary due to the current Financial Industry Regulatory Authority (FINRA®) rule structure. This letter also describes several clarifying changes that should be added if the rules are ultimately approved.

OTCBB Name Change Comment Letter - May 31, 2011
Letter describing the potentially controversial issues related to a proposal by FINRA to change the name of the OTC Bulletin Board (OTCBB) to the Non-NMS Quotation Service (NNQS).

Rule 6450 Comment Letter - March 22, 2011
Letter opposing a proposed FINRA regulation requiring a broker-dealer to disclose the amount of access fees it planned to charge at least three business days prior to imposing such fees. FINRA subsequently withdrew this proposal.

BX Venture Comment Letter - January 24, 2011
Letter describing flaws in the proposed operating procedures of the planned BX Venture Market. Many of the points raised in this letter were included in the final rule approving the BX Venture Market.

NASDAQ UTP Plan Amendment 21 Comment Letter - December 6, 2010
Letter opposing (i) inclusion of OTC market data supplied by FINRA in the NASDAQ UTP Plan, which is an NMS Plan, and (ii) formal recognition of the arbitrary compensation currently paid to FINRA for inclusion of its data in the NASDAQ UTP Plan.

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