Statement Summary
The Securities and Exchange Commission (SEC) has proposed amendments to Exchange Act Rule 15c2-11, which sets information gathering and review requirements for broker-dealers in the over-the-counter (OTC) market. The rule aims to prevent manipulative trading schemes and, under the amendments, will focus solely on equity securities.
SEC Chairman Paul S. Atkins emphasized the importance of tailoring regulations to fit specific asset classes. The proposal asserts the rule’s application to equity securities and is intended to clarify regulatory obligations for publishing quotations. The amendments will be available on SEC.gov and in the Federal Register, with a 60-day comment period following publication.
Original Statement
The Securities and Exchange Commission today proposed amendments to Exchange Act Rule 15c2-11, which sets out certain information gathering and review requirements for broker-dealers that publish quotations for, or maintain a continuous quoted market in, securities in the over-the-counter (OTC) market. Since its adoption, Rule 15c2-11’s focus has been on preventing certain manipulative and fraudulent trading schemes in the OTC equity markets.
The proposed amendments would amend Rule 15c2-11 to refer to only equity securities.
“Regulations should be appropriately tailored to fit the asset class to which they apply,” said SEC Chairman Paul S. Atkins. “This proposal would clarify regulatory obligations when publishing quotations and affirm what was always understood: Rule 15c2-11 applies to equity securities.”
The proposing release is published on SEC.gov and will be published in the Federal Register. The comment period will remain open for 60 days after the date of publication of the proposing release in the Federal Register.
