October 21, 2014
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Trade and Quote Halt Authority in OTCBB Securities Effective on June 26, 2000

On May 22, 2000, the Securities and Exchange Commission (SEC) approved a rule that gives Nasdaq® authority to impose trading and quotation halts in securities quoted on the OTC Bulletin Board® (OTCBB). The rule goes into effect on June 26, 2000. Under the rule, Nasdaq may halt trading in OTCBB issues in the following three instances:
  1. when the OTCBB security is dually listed on a foreign market or registered with a foreign regulatory authority and a foreign market or regulatory authority halts trading in the security for regulatory reasons;
  2. when the OTCBB security is a derivative or component of a Nasdaq-listed or an exchange-listed security, and Nasdaq or the exchange halts trading in the underlying security; and
  3. when the OTCBB issuer does not provide, in a timely manner, the National Association of Securities Dealers, Inc. (NASD®) with information required by SEC Rule 10b-17.
For all of the trade and quote halts described above, Nasdaq will notify market participants, and the public, of halts through the OTCBB website at www.otcbb.com and through Level 1 ServiceSM administrative messages, as described in Vendor Alert 2000-7. Beginning on Monday, June 26, 2000, market participants will be able to receive automated notification of OTCBB trade halts and resumptions of trading via e-mail from the OTCBB website. To subscribe to trade halt notifications, from the homepage simply click on E-mail and create an e-mail profile. Then check the "Trade Halts" box under "Subscriptions". If you already have an e-mail profile, then you only need to update your Subscription list.

Trading and quotations in the security may resume when Nasdaq has decided, after close review, that there is no further need for the halt, or when five trading days have passed from the initial halt date (whichever occurs first). (Notification of the lifting of the halt also will be made public through the OTCBB website and Level 1 administrative messages.) If a stock is halted for five days and then lifted, at the time the halt is lifted, Market Makers will be required to fulfill their obligations under SEC Rule 15c2-11 prior to initiating a priced or unpriced quotation in the security.

If you have any questions regarding this rule change, please direct them to the following contacts:

  • Operational issues: Sheila Dagucon, Vice President, Nasdaq Market Watch Department, (301) 590-6435;
  • General questions about OTCBB : Liz Heese, Market Specialist, Nasdaq Trading and Market Services, (202) 728-8191;
  • Issues related to Rule 10b-17 Halts: Dorothy Kennedy, Director Nasdaq Market Operations, (203) 385-6243;
  • Legal issues: John Malitzis, Assistant General Counsel, Nasdaq office of General Counsel, at (202) 728-8245.
Please see NASD Notice To Members 00-41 for additional information on OTCBB trade halts.


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