Technical Notice

OTC Equity Securities Minimum Quotation Size Processing Requirements

November 9, 2012

As previously announced, FINRA will modify the OTC equity minimum quotation tier structure effective Monday, November 12, 2012. 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.

Please note that the OTCBB system will not be automatically modifying firms’ quote sizes in the transition from the current minimum quote tier sizes to the new minimum quote tier sizes. Therefore, firms quoting OTC equity securities on the morning of November 12, 2012, must ensure their quote sizes meet the new minimum tier size requirements or update their quote sizes in order to be compliant with the revised minimum size tier structure.

Please contact Equities Business Services or call (866) 899-2107 with questions regarding this implementation.