Summary of FINRA and SEC Regulations — republished by Ronald Woessner from OTC Markets Website

See below for SEC and FINRA regulations that govern trading in securities quoted on OTC Link® ATS,  the OTC Markets SEC registered Alternative Trading System, reprinted from the OTC Markets website.


Rule 2000 — Business Conduct

Rule 2010 — Standards of commercial honor and principles of trade

Rule 2020 — Use of manipulative, deceptive or other fraudulent devices

Rule 4320 — Short sale delivery requirements

Rule 4560 — Short interest reporting

Rule 5210 — Publication of transactions and quotations

Rule 5220 — Offers at stated prices

IM-5220.01 — Firmness of quotations

Rule 5250 — Payments for market making

Rule 5310 — Best execution and Interpositioning

Rule 5320 — Prohibition Against Trading Ahead of Customer Orders

Rule 6431 — Recording of quotation information

Rule 6432 — Compliance with the Information Requirements of SEC Rule 15c2-11

Rule 6433 — Minimum quotation size requirements for OTC equity securities

Rule 6440 — Trading and quotation halt in OTC equity securities

Rule 6450 — Restrictions on Access Fee

Rule 6460 — Display of Customer Limit Orders

Rule 6490 — Processing of Company-Related Actions

Rule 6600 — OTC Reporting Facility

Rule 6620 — Reporting Transactions in OTC Equity Securities and Restricted Equity Securities

Rule 7400 — Order Audit Trail System (OATS)


Section 3 — Definitions and applications

Rule 3a38 — Definition of ‘Market Maker’

Rule 3a51-1 — Definition of Penny Stock

Section 17B — Automated quotation systems for Penny Stocks

Section 12 — Registration requirements for securities.

Rule 12a-8 — Exemption of Depositary Shares

Rule 12b-2 — Definitions (includes the definition of a Depositary Share)

Rule 12d2-2 — Removal from listing and registration

Rule 12g-1 — Exemption from Section 12(g)

Rule 12g3-2 — Exemptions for American Depositary Receipts and certain foreign securities

Rule 12g-4 — Certification of termination of registration

Rule 12g5-1 — Definition of securities ‘Held of Record’

Rule 12g5-2 — Definition of ‘Total Assets’

Rule 12h-3 — Suspension of 15(d) reports

Rule 12h-4 — Exemption from 15(d) reports

Rule 12h-6 — Certification by a Foreign Private Issuer regarding the termination of registration of a class of securities under Section 12(g) or the duty to file reports under Section 13(a) or 15(d)

Rule 15c2-11 — Initiation or resumption of quotations without specific information

Rule 15g-“2 — Risk disclosure document relating to the OTC Market

Rule 15g-3 —Broker or dealer disclosure of quotations and other information relating to the OTC Market

Rule 15g-5 — Disclosure of compensation of associated persons in connection with Penny Stock transactions

Rule 15g-6 — Account Statements for Penny Stock customers

Rule 15g-9 — Sales practice requirements for certain low-priced securities

Rule 15g-100 — Schedule 15G: Information to be included in the document distributed pursuant to 15g-2.

For a complete list of all SEC and FINRA rules, please see:

SEC Rules —

FINRA Rules —

Author: Ron

Ron Woessner of Dallas, Texas is former Senior Counsel to the Financial Services Committee of the US House of Representatives where he was special advisor to the Chairman for capital markets and fintech matters. He founded Microcap Strategies building upon his 25+ years' legal and operational experience in the smaller-cap and startup company ecosphere in the capacity of General Counsel to two NASDAQ-listed companies and CEO of an OTC-traded company that he up-listed to NASDAQ.  Mr. Woessner, a certified Toastmaster, currently lectures and writes on the inhospitability of the US public markets to smaller cap companies and other capital markets topics. His articles are published by and elsewhere. He also advocates in Washington DC for policies that create a more hospitable public company environment for smaller-cap companies, enhance capital formation, promote entrepreneurship, and increase upward mobility for all Americans, particularly minorities.