Regulatory Notice 09-14

SEC Approves Alternative Means for Calculating the Minimum Price-Improvement Obligations Under Certain Circumstances; Effective Date: February 11, 2009

Executive Summary

Effective February 11, 2009, firms are permitted to use an alternative method for calculating the minimum price improvement obligation under NASD IM-2110-2 (Trading Ahead of Limit Orders) in cases where the firm receives a customer limit order in an OTC equity security that is priced below $1.00 and where there is no current published inside spread in that security.

 

The text of the amendments can be found at www.finra.org/Industry/Regulation/RuleFilings/2008/P117569.

 

Questions regarding this Notice should be directed to Racquel Russell, Assistant General Counsel, Office of General Counsel, at (202) 728-8363.