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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: Taki who wrote (104445)	5/2/2002 9:13:38 PM
From: Taki	Read Replies (1) \| Respond to of 150070

Market Rules for BBX. I love 1, 2, 3,especially #2=BBX market makers will be required to report their short interest on a monthly basis, as market makers in Nasdaq National Market. The BBXSM trading environment will differ in several ways from that of the OTC Bulletin Board® (OTCBB) today. Specifically, the BBX marketplace rules will be different. The BBX proposes to adopt marketplace rules closely modeled on current Nasdaq marketplace rules, with changes to reflect the differences in the listed companies. Three important Nasdaq rules that will apply to the BBX going forward are: 1) market makers will be required to maintain continuous, two-sided markets, with quotes that are reasonably related to the market and that generally do not lock or cross the market, 2) BBX market makers will be required to report their short interest on a monthly basis, as market makers in Nasdaq National Market ® (NNM®) and SmallCap stocks do today, and 3) the BBX proposes to adopt the same trade halt rule that currently applies to NNM and SmallCap issues. This provides BBX with broader authority consistent with its new relationship with BBX issuers. The BBX also proposes to retain certain OTCBB rules. For example, the BBX will continue to require market makers to quote in a designated minimum size, depending on the quoted price of a BBX issue. In addition, BBX proposes to limit the marginabilty of BBX issues by imposing a 100% maintenance margin requirement. BBX market participants will also be required to comply with the SEC’s Penny Stock Rules whenever a stock would qualify as a penny stock absent its listing on the BBX. These changes are designed to help make the BBX a liquid, efficient, and orderly trading venue for this unique segment of the market. BBX Automated Trading Systems The BBX will offer a far superior trading and quoting system to that of the OTCBB. In place of today's telephonic communications, the BBX will provide a dynamic quotation system, and a fully automated trading environment. The proposed automated order delivery service (ODS) will enable BBX users to communicate electronically with one another to negotiate and confirm the execution of non-liability orders. It will offer much of the functionality of the SelectNet® service that is used for trading of Nasdaq National Market and SmallCap issues. The automatic execution system will offer immediate execution of liability orders priced at the Best Bid or Offer (BBO). This will ensure market participants rapid access to the best-priced quotations in BBX issues. We expect that these changes will increase the speed, efficiency, and quality of execution in the BBX marketplace. Market Regulation Nasdaq and NASD Regulation, Inc. are committed to maintaining a high level of regulation in the BBX trading environment. NASD Regulation anticipates that the automated trading systems will enable it to surveil the BBX marketplace more effectively. Nasdaq will provide the same level of intra-day surveillance for the BBX as is currently available for Nasdaq issues. Nasdaq MarketWatch, TradeWatch, and NASDR Market Regulation will monitor for the following: Issuer news that warrants a news-related Trade Halt; Backing away; Excused withdrawals from the market, locked/crossed markets and trading during trading halts; Best execution obligations; Marking-the-close activity; Anti-competitive practices by market makers; Front-running of research; Short interest reporting; and Insider trading.