OTC Equity Securities Minimum Quotation Size Requirement

Effective Monday, November 5, 2012, FINRA will modify the OTC equity minimum quotation tier structure.  FINRA will pilot the new tier structure for a minimum of one year, and will periodically review it to determine if the pilot tier changes should become permanent or be modified further. See Regulatory Notice 12-37 for additional information.

 

Under FINRA Rule 6433, every member firm that functions as a market maker in OTC equity securities by entering firm quotations into the OTC Bulletin Board Service (OTCBB) (or any other inter-dealer quotation system that permits quotation updates on a real-time basis) must honor those quotations for the minimum size defined.

 

Current Quotation Tier Structure (in effect until November 5, 2012)

Price (Bid or Offer) Minimum Quote Size
0–.5015,000
.51–1.002,500
1.01–10.00500
10.01–100.00200
100.01–200.00100
200.01–500.0025
500.01–1000.0010
1000.01–2500.005
2500.01+1

 

Modified Quotation Tier Structure (in effect for a minimum of one year after November 5, 2012)

Price (Bid or Offer)Minimum Quote Size
0.0001–0.099910,000
0.10-0.19995,000
0.20–0.50992,500
0.51–0.99991,000
1.00–174.99100
175.00+1

 

Testing for the modified tier structure changes will be available on Saturday, October 13, 2012, and Saturday, October 20, 2012. FINRA will issue additional testing details as they become available.

 

Please contact FINRA Product Management or call (866) 899-2107 with questions.