OTC Markets Group advises market professionals to become familiar with FINRA® and SEC regulations that govern trading in securities quoted on OTC LinkTM. The below list and the OTC Market Regulation reference document provide excellent summaries of the applicable rules and regulations.
FINRA
Rule 2010 – Standards of commercial honor and principles of trade
Rule 2020 – Use of manipulative, deceptive or other fraudulent devices
Rule 2100 – General standards
Rule 4320 – Short sale delivery requirements
Rule 4560 – Short interest reporting
Rule 5210 – Publication of transactions and quotations
Rule 5220 – Offers at stated prices
IM–5220 – Firmness of quotations
Rule 5250 – Payments for market making
Rule 5310 – Best execution and Interpositioning
Rule 5320 – Trading ahead of customer limit orders
Rule 6431 – Recording of quotation information
Rule 6432 – Submission of Rule 15c2–11 information on OTC equity securities
Rule 6433 – Minimum quotation size requirements for OTC equity securities
Rule 6440 – Trading and quotation halt in OTC equity securities
Rule 6450 – Restrictions on Access Fees
Rule 6460 – Display of Customer Limit Orders
Rule 6490 – Processing of Company-Related Actions
Rule 6600 – OTC equity reporting
Rule 6620 – Transaction reporting
Rule 7400 – Order Audit Trail System (OATS)
SEC
Section 3 – Definitions and applications For a complete list of all SEC and FINRA rules, please see:
Rule 3a38 – Definition of ‘Market Maker’
Rule 3a51–1 – Definition of Penny Stock
Section 17B – Automated quotation systems for Penny Stocks
Section 12 – Registration requirements for securities.
Rule 12a–8 – Exemption of Depositary Shares
Rule 12b–2 – Definitions (includes the definition of a Depositary Share)
Rule 12d2–2 – Removal from listing and registration
Rule 12g–1 – Exemption from Section 12(g)
Rule 12g3–2 – Exemptions for American Depositary Receipts and certain foreign securities
Rule 12g–4 – Certification of termination of registration
Rule 12g5–1 – Definition of securities “Held of Record”
Rule 12g5–2 – Definition of “Total Assets”
Rule 12h–3 – Suspension of 15(d) reports
Rule 12h–4 – Exemption from 15(d) reports
Rule 12h–6 – Certification by a Foreign Private Issuer regarding the termination of registration of a
class of securities under Section 12(g) or the duty to file reports under Section 13(a) or 15(d)
Rule 15c2–11 – Initiation or resumption of quotations without specific information
Rule 15g–2 – Risk disclosure document relating to the OTC Market
Rule 15g–3 – Broker or dealer disclosure of quotations and other information relating to the OTC Market
Rule 15g–5 – Disclosure of compensation of associated persons in connection with Penny Stock
transactions
Rule 15g–6 – Account Statements for Penny Stock customers
Rule 15g–9 – Sales practice requirements for certain low–priced securities
Rule 15g–100 – Schedule 15G: Information to be included in the document distributed pursuant to
