Just some general info.....
Can a security be traded on the OTC Bulletin Board® (OTCBB) and Nasdaq® at the
same time?
No. The OTCBB is a quotation service for securities which are not listed or traded on
Nasdaq or a national securities exchange. It is possible, however, for a security to list or
delist from Nasdaq intraday, and therefore move from the OTCBB to Nasdaq or from
Nasdaq to the OTCBB during the same trading day.
What is the difference between the OTC market and a stock exchange?
Stock exchanges have specific quantitative and qualitative listing and maintenance
standards which are stringently monitored and enforced. Companies listed on an
exchange have reporting obligations to the exchange and a direct business relationship
exists between the exchange and its listed companies. The OTC market consists of
unlisted securities. Issuers of these securities often have no reporting obligations to any
federal regulatory authority. There are no minimum required standards and no business
relationship exists between the quotation services (OTCBB, "Pink Sheets") and the
issuers.
How does the OTCBB differ from the Pink Sheets?
The OTCBB and the "Pink Sheets" are competing quotation services for OTC equity
securities. The "Pink Sheets" are operated by the National Quotation Bureau, LLC
(NQB) and are a static paper quotation medium printed weekly and distributed to
broker/dealers while the OTCBB displays electronic real-time quotes, last-sale prices,
and volume information for domestic securities, foreign securities, and ADRs.
What is an other-OTC security?
All OTC equity securities which are not quoted on the OTC Bulletin Board and are
eligible for trade reporting on the Automated Confirmation Transaction ServiceSM
(ACTSM)are categorized as other-OTC. This includes, but is not limited to, securities
quoted on the Pink Sheets. Please see the FAQ regarding the download of all
other-OTC securities from the symbol directory.
What are the listing requirements for the OTCBB?
Because the OTCBB is a quotation service for NASD Market Makers, not an issuer
listing service or securities exchange, there are no minimum listing requirements that must
be met by an OTCBB issuer. Further, there are no maintenance or reporting
requirements for issuers to The Nasdaq Stock Market, Inc. or the NASD®. However,
effective April 1, 1998, all foreign issues and ADRs must be registered with the
Securities & Exchange Commission (SEC) pursuant to Section 12 of the Securities
Exchange Act of 1934.
Are there trading halts on OTCBB securities?
Trading can be halted on OTCBB securities, however, neither The Nasdaq Stock
Market, Inc. nor the NASD has the authority to do so. Trading in an OTC security may
only be halted by the SEC.
What are the quotation increments/minimum quote size for OTCBB securities?
The minimum quotation size requirements for OTC equity securities vary depending on
the price of the quote. Please see Rule 6750 for further details.
How do I withdraw from an OTCBB stock?
From the Nasdaq Workstation IITM, click on "MarketMaking" from the top menu bar.
Then, click on "Update." Type in the number "3 + the stock symbol" in the Security ID
field. Tab down into the "State" field and type in a "W" then click on the "Send" button.
You are now withdrawn from the stock.
How can I get trade and quote data for OTCBB securities?
Current and delayed trade and quote information are available for OTCBB securities
from some market data vendors. Please visit our Vendor Page for information on
contacting these data vendors.
Where can I get historical trade and quote data for OTCBB securities?
The OTCBB Research Service offers a variety of standardized and customized research
reports for OTCBB securities. Please visit our Research Services Page for information
on the reports and research that are available from the Service.
How does a company get on the OTCBB?
Please visit our How To Quote Securities Page in Market Maker Services for detailed
information on quoting a security on the OTCBB.
Are there filing requirements for OTCBB issuers?
No. OTCBB issuers have no filing or reporting obligations to The Nasdaq Stock
Market, Inc. or the NASD, however, many OTCBB companies do file with the SEC.
These filings may be retrieved online from the SEC EDGAR Database.
Where can I get phone and address information for an OTCBB issuer?
OTCBB issuers are not required to maintain current address and contact information
with The Nasdaq Stock Market, Inc. or the NASD. This information is available,
however, for many OTCBB issuers. The 1998 OTC Bulletin Board Fact Book and
Company Directory, accessible from the Trading Data area of this Web site, contains
trading symbol, name and 1997 summary trading statistics for every OTCBB issue.
Address and contact information as of December 31, 1997 are also included when
available. The 1998 OTC Bulletin Board Fact Book and Company Directory was
created from data as of December 31, 1997. If you are unable to retrieve information
for a particular OTCBB security, this security was not quoted on the OTC Bulletin
Board as of December 31, 1997.
Can a company be delisted?
No. A company can not be delisted from the OTCBB. All OTCBB issues, however,
must maintain at least one registered Market Maker to remain on the OTCBB. When
the last Market Maker in a security withdraws from the stock, the issue is removed from
the OTCBB.
What is a Form 211?
The Form 211 is the form which must be completed and submitted to the NASD
Regulation, Inc. OTC Compliance Unit to initiate or resume quotations in the OTCBB,
the NQB "Pink Sheets", or any other comparable quotation medium. To view or print
the Form 211, please visit our Market Maker Services Forms Page.
Why don't I receive Inside Quote information for all OTCBB securities?
At least two Market Makers must post both bid and ask quotations to calculate the
inside market for a security. Because only one Market Maker is required to keep a
security on the OTCBB and Market Makers are permitted to post one-sided quotes
and unpriced indications of interest, there may be securities for which inside quotes can
not be calculated.
Who is responsible for regulating the OTCBB?
NASD Regulation regulates the quotation activity and trade practices of OTCBB
Market Makers. OTCBB issuers are not regulated by The Nasdaq Stock Market, Inc.,
the NASD, or NASD Regulation.
How can I get my URL included on the OTCBB.com vendor list?
The OTCBB Web site features hot links to authorized real-time and delayed vendors of
market data from the Vendor Information section of this site. To be included on the
vendor link page, you must read, complete, and sign the Corporate URL Address
Authorization Form (click here for a PDF version of the form). Please fax the completed
form, along with samples of your data display, to Nasdaq Trading and Market Services
at (202) 728-8206. Allow two weeks for processing.
Can an issuer reserve a symbol?
No, symbols may not be reserved for OTC securities. A symbol preference can be
requested on the Form 211. If a requested symbol is not reserved for use on Nasdaq or
restricted, we will advise the issuer that the symbol is available at that time, but that we
reserve the 'right' to change their symbol should a Nasdaq applicant want to use it.
There can be no guarantee that the OTC issuer will retain that symbol indefinitely.
How are symbols assigned?
If a requested symbol is not available, one will be assigned. Generally, the symbol
assigned begins with the first letter of the first name of the issue. Reserved or restricted
symbols can never be used. Any issuer may contact Market Operations at (203)
375-9609 to ask whether a symbol is available.
Do I have to file a Form 211 for a New York Stock Exchange or American Stock
Exchange delisted security?
Yes. Prior listing on NYSE or AMEX does not exempt a Market Maker from the Form
211 filing requirement.
Do financials submitted with the Form 211 have to be audited?
No. It is not required that the financials requested in the Form 211 be audited.
What is the source of historical OTCBB trading data?
Historical OTCBB trading data is retrieved from a database which is populated daily
from files which are generated from ACT trade reports. When working with historical
OTCBB trade data, it is important to note that the data is not limited to media reported
activity, and that cancelled trade information is not consistently captured.
May I create a link to the OTCBB Web site?
Anyone may freely create a link to the OTCBB Web site. When referencing the
OTCBB Web site or the OTCBB, however, do not include the words "NASD" or
"Nasdaq". The OTCBB is not part of the Nasdaq Stock Market, but rather an
electronic quotation medium for securities traded outside of The Nasdaq Stock Market.
Unlike The Nasdaq Stock Market, there are no issuer qualification requirements for
securities included on the OTCBB. OTCBB issuers are not currently subject to the
same mandatory regulatory, reporting, and disclosure obligations as issuers of Nasdaq
securities. Using the words "NASD" or "Nasdaq" in your link to this Web site may lead
to confusion on the part of individual investors or create the mistaken impression that the
OTCBB is part of The Nasdaq Stock Market. In any reference or link to this Web site
or the OTCBB, please use only "OTC Bulletin Board" or "OTCBB".
AND
November 4, 1998
OTCBB Eligibility Rule Proposal Published in the Federal Register
The Securities and Exchange Commission (SEC) has recently published in the Federal
Register the National Association of Securities Dealers' (NASD®) proposed rule
change for the OTC Bulletin Board (OTCBB). The full text of the rule proposal (Filing
number SR-NASD-98-51) can be viewed on-line at the Federal Register.
OTC securities are quoted in media where there are no listing requirements and often,
no public information available. The NASD proposal is intended to balance the benefits
that the transparency of the OTCBB provides with the public need for information about
the issuers being quoted.
OTC Bulletin Board Eligibility Rule
This proposed rule change will ensure that current financial information about domestic
companies that are quoted on the OTCBB is publicly available. Presently, NASD rules
require foreign and American Depositary Receipts (ADR) issuers to file periodic reports
with the SEC in order to be quoted on the OTCBB. The NASD has proposing to
extend that requirement to domestic securities. The rule, if approved, will permit only
those domestic companies that report their current financial information to the SEC,
banking, or insurance regulators to be quoted on the OTCBB.
This requirement will be immediately effective upon approval by the SEC for securities
not currently quoted on the OTCBB.
Non-reporting companies whose securities are already quoted on the OTCBB will have
between 6 and 18 months (depending on where they fall in a phase-in period) to comply
with the new requirements once the rule becomes effective.
If an issuer becomes delinquent in its reports, there will be a grace period of 30 - 60
days (depending on the type of issuer) during which Market Makers may continue to
quote the security.
Comments to the SEC may be submitted via electronic mail or in writing. E-mail your
comments to rule-comments@sec.gov and be sure to include the file number,
SR-NASD-98-51, in the subject line.
If you would prefer to submit comments through the U.S. mail, send six copies to:
Jonathan G. Katz
Secretary
The Securities and Exchange Commission
450 Fifth Street, NW
Washington, DC 20549
Re: SR-NASD-98-51
Other regulatory initiatives regarding the OTC market are still under consideration by
the SEC. |
