FINRA filed with the SEC a proposed rule change to amend FINRA Rule 6433 ("Minimum Quotation Size Requirements for OTC Equity Securities") to extend the Tier Size Pilot for an additional three months, until May 15, 2015. The purpose of the extension is to provide FINRA with additional time to finalize its recommendation with regard to the Pilot. The proposed rule change was filed for immediate effectiveness. See: Text of Proposed Rule Change. Related news: FINRA Rule Change to Extend Tier Size Pilot Regarding Minimum Quotation Size Requirements for OTC Equity Securities Published (Fed. Reg.)

The SEC announced that its Advisory Committee on Small and Emerging Companies will hold a public meeting by telephone conference call on February 17, 2015. The advisory committee plans to vote on recommendations regarding the definition of an "accredited investor." See: SEC Press Release.

New SRO rules and rule proposals were announced by the SEC. Click on the links to view the SEC's notices of exchange rule changes and proposals for the week of January 26 – January 30. Clearance Settlement: BATS: Effective Immediately - Rule Change to Amend Rules 2.5(c)(4) and 11.5 to Harmonize with EDGA and EDGX Rules, its Membership Requirements Applicable to Clearing Agencies that Clear Transactions for Members (see also Exhibit 5) BYX: Effective Immediately - Rule Change to Amend Rules 2.5(c)(4) and 11.5 to Harmonize with EDGA and EDGX Rules, its Membership Requirements Applicable to

The SEC charged the executives of International Capital Group ("ICG") with selling penny stocks through purported stock-based loans, block trades and other transactions, without registering with the SEC as a broker-dealer. The SEC alleged that ICG made nonrecourse loans to an owner of the stock, who was an affiliate of the issuer, then foreclosed on the loan and distributed the stock at a sale price greater than the loan amount. Se e: SEC Order.

The FIA Principal Traders Group (the "FIA PTG") released a position paper (the "Position Paper") offering recommendations on how to simplify and "improve" U.S. equity markets. The Position Paper recommends eliminating the order protection rule (Regulation NMS Rule 611) and the requirement to avoid displaying locked and crossed markets (Regulation NMS Rule 610(d)) which according to the Position Paper, would reduce "complexity and fragmentation" in U.S. equity markets. According to the FIA PTG, these rules add significant complexity by (i) requiring trading venues to collect and process data