October 23, 2014
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Unregistered Foreign Equities and ADRs Will Be Ineligible for OTCBB

Effective April 1, 1998, foreign equities and American Depositary Receipts (ADRs) that are not registered with the Securities and Exchange Commission (SEC) under Section 12 of the Exchange Act will no longer be eligible for quotation on the OTCBB. The SEC has concluded that the benefits of providing transparency for these foreign securities on the OTCBB are outweighed by the potential for including unregistered securities on a visible U.S. market, which may be inconsistent with the full disclosure goals of the securities laws.

Beginning on April 1, last sale transaction reports for eligible OTCBB foreign equities and ADRs will be disseminated on a real-time basis, as last sale reports for domestic OTC equity securities are now. Additionally, OTCBB traders will be able to update their quotations in eligible foreign and ADR securities on a real-time basis throughout the day -- as opposed to the current twice-daily update limitation. Please be aware that after these rule changes are effective, any priced quotation in a foreign equity or ADR on the OTCBB will be firm, but unpriced (or "name only") quotations will still be permitted.

Unregistered foreign equities and ADRs currently quoted on the OTCBB will be removed by market open on Wednesday, April 1. The quotations for eligible OTCBB securities as of March 31st will be carried over to April 1st, except that the price and size of any priced quotation will be deleted overnight (on that night only) and should be re-entered on April 1. From that point on, priced entries will carry over to the next trading day and will no longer need to be re-entered each day. After April 1, eligible foreign equities and ADRs not quoted on the OTCBB may be placed on the OTCBB by filing a Form 211.

Please note that these rule changes will not affect the quotation of domestic securities quoted on the OTCBB. For more details on the rule changes, please review Notice to Members 98-7.

Questions concerning this rule change may be directed to Adena Friedman, Director, OTCBB, at (202) 728-8832, or Andrew S. Margolin, Senior Attorney, Office of General Counsel, Nasdaq, at (202) 728-8869.


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