SEC Approves Amended Minimum Quotation Sizes for OTC Equity Securities on a Pilot Basis (FINRA Regulatory Notice)

The SEC approved amendments to FINRA Rule 6433 (Minimum Quotation Size Requirements for OTC Equity Securities) to simplify the existing tier structure, facilitate the display of customer limit orders pursuant to FINRA Rule 6460 (Display of Customer Limit Orders), and expand the scope of the rule to encompass quotations displayed by non-market makers. FINRA will implement the new quotation sizes as a one-year pilot beginning on November 5, 2012, and ending on October 31, 2013, unless extended or made permanent.

Cross Reference(s): FINRA Rules 6433and 6460; SEC Release 34-67208, 77 FR 37458 (June 21, 2012) (Order Approving Amendments to Minimum Quotation Size Requirements for OTC Equity Securities). For a general discussion of these rule requirements, see Lofchie's Broker-Dealer Guide, Trading Chapter.

View notice in full here(links externally to FINRA website).