ORF Trading Halts
FINRA will review and evaluate available information to determine whether a trading and quotation halt in an OTC Equity Security is appropriate under the terms of FINRA Rule 6440 (Trading and Quotation Halts in OTC Equity Securities).
Pursuant to FINRA Rule 6440, in circumstances in which it is necessary to protect investors and the public interest , FINRA has been granted authority to halt trading and quotations in OTC securities (as such term is defined in FINRA 6420) if:
- The OTC Equity Security or the security underlying an American Depository Receipt ("ADR") that is an OTC Equity Security ("OTC ADR") is listed on or registered with a foreign securities exchange or market, and the foreign securities exchange, market, or regulatory authority overseeing such issuer, exchange, or market, halts trading in such security for regulatory reasons because of public interest concerns or for news pending; provided, however, that FINRA will not impose a trading and quotation halt if the Foreign Regulatory Halt was imposed solely for a regulatory filing deficiency, or operational reasons ("Foreign Regulatory Halt");*
- The OTC Equity Security or the security underlying an OTC ADR is a derivative or component of a security listed on or registered with a national securities exchange or foreign securities exchange or market ("listed security") and the national securities exchange, or foreign securities exchange or market imposes a trading halt in the listed security ("Derivative Halt"); or
- FINRA determines that an extraordinary event has occurred or is ongoing that has had a material effect on the market for the OTC Equity Security or the security underlying an OTC ADR or has caused or has the potential to cause major disruption to the marketplace and/or significant uncertainty in the settlement and clearance process ("Extraordinary Event Halt").
* Non-US exchanges, markets and regulatory authorities are under no obligation to report halts or other information pertaining to securities in their markets to FINRA.
In addition to the authority granted by FINRA Rule 6440, FINRA will suspend trading in an OTC Equity Security in conjunction with an SEC-initiated trading suspension.
For any questions or issues related to trading halts, please contact FINRA Operations Department at (866) 776-0800.