equity securities

Exam Alert: FINRA amends trading halt rules

Effective May 9, 2013, FINRA revised its rules for imposing trading halts. The changes rules clarify the following… Continue reading

Effective May 9, 2013, FINRA revised its rules for imposing trading halts. The changes rules clarify the following:

-FINRA may start a trading halt for an OTC equity security based on a foreign regulator halting trading in that security, assuming the halt is based on news pending or public interest concerns.

-FINRA may keep such a trading halt going for more than 10 days if a foreign regulator has kept a trading halt going past 10 days.

-FINRA may also keep a trading halt caused by an extraordinary event going for more than 10 days if the halt if there is an ongoing basis for the halt.

Source: FINRA Regulatory Notice 13-13: SEC Approves Amendments to Rule 6440 Relating to Trading and Quotation Halts in OTC Equity Securities

This alert applies to the Series 7, Series 24, Series 55, and Series 62.

Exam Alert: FINRA to modify minimum quote sizes for OTC stocks

Effective November 5, 2012, FINRA will implement a pilot program modifying the standards for minimum quotation sizes for OTC equity securities. Continue reading

Effective November 5, 2012, FINRA will implement a pilot program modifying the standards for minimum quotation sizes for OTC equity securities. During this program, the minimum quote sizes will be as follows:

Price (Bid or Offer)	Minimum Quote Size (# of shares)
$0.0001 to $0.0999	10,000
$0.10 to $0.1999	5,000
$0.20 to $0.5099	2,500
$0.51 to $0.9999	1,000
$1.00 to $174.99	100
$175.00+	1

The rule will also be extended to apply to all quotes and orders displayed in an inter-dealer quotation system, including quotes displayed by alternative trading systems and quotes reflecting customer orders. The program will last until October 31, 2013, unless rescinded, extended, or made permanent.

Source: FINRA Regulatory Notice 12-37

This alert applies to the Series 55, Series 62, Series 24, and Series 7.

Exam Alert: 30-second trade reporting requirement is in effect

Effective November 10, 2010, FINRA’s prior 90-second trade reporting requirement has been replaced with a Continue reading

Effective November 10, 2010, FINRA’s prior 90-second trade reporting requirement has been replaced with a 30-second trade reporting requirement. This applies to OTC trades made in equity securities during the hours that FINRA trade reporting facilities are open (generally 8 AM to 8 PM Eastern Time). This change also affects trade cancellations that were subject to 90-second reporting. Note that bonds are typically have a 15-minute trade reporting requirement.
Relevant to the Series 7, Series 62 and the Series 24 General Securities Principal exam.

http://www.finra.org/Industry/Regulation/Notices/2010/P121342