Regulatory Notice 13-13

SEC Approves Amendments to Rule 6440 Relating to Trading and Quotation Halts in OTC Equity Securities

Effective Date: May 9, 2013

The SEC approved amendments to FINRA Rule 6440 (Trading and Quotation Halt in OTC Equity Securities) to clarify that FINRA may (1) initiate a trading and quotation halt in an OTC equity security upon notice of a foreign regulatory halt for news pending, including notice from a reliable third-party source; (2) continue to halt trading and quoting in such OTC equity security until notice from the appropriate foreign regulatory authority is received that it has or intends to resume trading in the security, even if the halt is longer than 10 business days; and (3) extend a halt initiated for an extraordinary event beyond 10 business days if it determines that the basis for the halt still exists. The effective date is May 9, 2013.

The text of the amended rule is available in the online FINRA Manual.

Questions concerning this Notice should be directed to:

  • Kosha K. Dalal, Associate Vice President and Associate General Counsel, Office of General Counsel at (202) 728-6903; or
  • FINRA Operations at (866) 776-0800.