Antiquated FINRA Rules Stifle Small Co. Capital Formation
By Laura Anthony ( April 5, 2018, 11:52 AM EDT) -- On Jan. 8, 2018, OTC Markets Group Inc. submitted a comment letter to the Financial Industry Regulatory Authority related to FINRA Rule 6432. Rule 6432 requires that a market maker or broker-dealer have the information specified in Securities Exchange Act Rule 15c2-11 before making a quotation in a security on the over-the-counter market. Although I summarize here the salient points of the OTC Markets comment letter, I encourage those interested to read the entire letter, which contains an in-depth analysis and comprehensive arguments to support its position. On Feb. 8, 2018, OTC Markets submitted a second comment letter to FINRA, this one related to FINRA Rule 5250. Rule 5250 prohibits companies from compensating market makers in connection with the preparation and filing of a Form 211 application....
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