SEC Alert! OPEN for comment: The SEC is soliciting comments on the existing collection of information provided for in Rule 15c2-11.
Rule 15c2-11 is designed to prevent broker-dealers from publishing or submitting quotations for OTC securities that may facilitate a fraudulent or manipulative scheme.
Source: https://public-inspection.federalregister.gov/2023-07495.pdf
https://public-inspection.federalregister.gov/2023-07495.pdf
- Rule 15c2-11 governs the publication of quotations for securities in a quotation medium other than a national securities exchange (i.e., over the counter (“OTC”) securities).
- The Rule is designed to prevent broker-dealers from publishing or submitting quotations for OTC securities that may facilitate a fraudulent or manipulative scheme.
- Subject to certain exceptions, the Rule prohibits broker-dealers from publishing any quotation for a security or, directly or indirectly, submitting any quotation for publication, in a quotation medium unless they have reviewed specified information concerning the issuer.
- The Commission staff believes that the recordkeeping and review requirements under Rule 15c2-111 apply to: 86 broker-dealers, 1 qualified interdealer quotation system (“Q-IDQS”), and 1 registered national securities association.
Based on information provided by the Financial Industry Regulatory Authority, Inc. (“FINRA”), the Commission staff understands that in the 2022 calendar year, 377 Form 211 applications were filed to initiate the publication or submission of quotations of OTC securities.
- 60 of these Forms 211 concerned OTC securities of prospectus issuers, Regulation A (“Reg. A”) issuers, and reporting issuers;
- 258 concerned OTC securities of “exempt foreign private issuers”;
- 59 concerned OTC securities of “catch-all issuers.”
- The collection of information that is submitted to FINRA for review and approval is currently not available to the public from FINRA.
The SEC's staff’s estimates of the ongoing annual hour burdens:
https://public-inspection.federalregister.gov/2023-07495.pdf
https://public-inspection.federalregister.gov/2023-07495.pdf
Written comments are invited on:
- Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility.
- The accuracy of the Commission’s estimates of the burden of the proposed collection of information.
- Ways to enhance the quality, utility, and clarity of the information collected.
- Ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology.
- Comments are due 60 days from 4/11/2023.
How to comment:
- Please direct your written comments to: David Bottom, Director / Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street, NE, Washington, DC 20549,
- Emails: Send an e-mail to
[email protected]Subject: SEC File No. 270-196, OMB Control No. 3235-0202 - Comments are due 60 days from 4/11/2023.
TLDRS:
- The SEC is soliciting comments on the existing collection of information provided for in Rule 15c2-11.
- Rule 15c2-11 governs the publication of quotations for securities in a quotation medium other than a national securities exchange (i.e., over the counter (“OTC”) securities).
- The Rule is designed to prevent broker-dealers from publishing or submitting quotations for OTC securities that may facilitate a fraudulent or manipulative scheme.
- Subject to certain exceptions, the Rule prohibits broker-dealers from publishing any quotation for a security or, directly or indirectly, submitting any quotation for publication, in a quotation medium unless they have reviewed specified information concerning the issuer.
- The Commission staff believes that the recordkeeping and review requirements under Rule 15c2-111 apply to: 86 broker-dealers, 1 qualified interdealer quotation system (“Q-IDQS”), and 1 registered national securities association.
