******* general OTC:BB NEWS***********
New to the thread, but found something that may be of interest to everyone on another thread. Would be nice to see some cleanin up in the arena!
Thursday January 27, 4:02 pm Eastern Time
Company Press Release
SOURCE: National Association of Securities Dealers, Inc.
NASD Board Approves Limit Order Pilot Protection
Program For the OTC Bulletin Board
WASHINGTON, Jan. 27 /PRNewswire/ -- The
National Association of Securities Dealers, Inc. (NASD©),
today announced that its Board has approved a pilot program
that will provide protection to investors who
place limit orders for some OTC Bulletin Board© (OTCBB)
securities. If approved by the Securities and Exchange
Commission (SEC), the program will require Market Makers
in a select group of OTCBB securities to execute customer
limit orders before trading for their own accounts.
Under the new program, Market Makers will be prohibited
from executing proprietary trades at prices superior or
equal to a customer's limit order without providing
contemporaneous execution of the customer's order.
Contemporaneous is defined as ``within a reasonable time
frame, but not to exceed five minutes.' This
definition takes into consideration the fact that,
without an automated means of execution, Market Makers
in OTCBB securities must execute those orders manually.
``Since the introduction of the Internet as a mainstream
marketing communications tool for small issuers and
innovative brokers, investor participation in the OTC
equity market has grown dramatically,' said J. Patrick
Campbell, chief operating officer of Nasdaq. ``We believe
that these new investor protection provisions will greatly
benefit the OTCBB market.'
If approved by the SEC, the 12-month ``Limit Order
Protection Pilot' program will phase in 300 OTCBB
securities over a period of several weeks. Securities
selected will be the 200 most active plus an
additional 100 to complete the pilot based on other
factors including some that have been delisted from
The Nasdaq Stock Market© and now trade on the OTCBB.
In the last four years, the OTCBB has experienced growth
of 106% in Market Maker positions, 687% in average
daily share volume, and 96% in average daily dollar volume.
The OTCBB is a quotation medium for subscribing members, not an issuer listing service, and should not be confused with The Nasdaq Stock Market(SM). OTCBB securities are
traded by a community of Market Makers that enter quotes
and trade reports through a highly sophisticated, closed computer network, which is accessed through Nasdaq Workstation IITM. OTCBB companies are not required to
meet Nasdaq listing standards.
The National Association of Securities Dealers, Inc.,
is the largest securities-industry, self-regulatory organization in the United States. It is the parent
organization of The Nasdaq Stock Market©, The American Stock Exchange©, and NASD Regulation, Inc. For more information about the NASD and its subsidiaries, please visit the following Web sites: www.nasd.com; www.nasdaq.com; www.amex.com; www.nasdr.com; or
the Nasdaq Newsroom(SM) at www.nasdaqnews.com. For
more information about the OTC Bulletin Board, please
visit www.otcbb.com.
SOURCE: National Association of Securities Dealers, Inc.
|
