On September 16, 2020, the US Securities and Exchange Commission (SEC) adopted amendments to Rule 15c2-11 under the Securities Exchange Act of 1934. Rule 15c2-11 governs the publication of quotations for securities in a quotation medium other than a national securities exchange — over-the-counter (OTC) securities, in particular.
Among other matters, the amendments require information about issuers to be current and publicly available for broker-dealers to quote their securities in the OTC market; narrow reliance on certain exceptions from the requirements of Rule 15c2-11, including the piggyback exception; add new exceptions for the quotations of securities that may be less susceptible to fraud and manipulation; and remove obsolete provisions.
The amendments became effective on December 28, 2020. Broker-dealers and other market participants will be required to comply with the amended Rule commencing on September 28, 2021.