Pink OTC Markets Announces Limit Order Protection Changes
NEW YORK, NY--(Marketwire - November 11, 2008) - Pink OTC Markets
Inc., the leading electronic inter-dealer quotation system, trading
technology and financial information provider for over-the-counter
(OTC) securities, is pleased to announce a new Financial Regulatory
Authority (FINRA) rule change effective today for limit order
protection in the OTC marketplace.
Starting today, broker-dealers that handle customer limit orders in
OTC equities, whether received from their own customers or from
another member firm, cannot trade ahead of customer limit orders.
This means that a firm cannot trade for its own account at a price
equal to or better than a customer limit order without also executing
the customer order.
This specialist-type obligation on OTC broker-dealers to execute
customer limit orders price for price and share for share brings one
of the most significant regulatory safeguards of trading exchange-
listed securities to investors in the OTC market. This significant
rule change will result in improved quality of executions for
investors and improved OTC market efficiency.
Limit order protection will contribute substantially to transparency
in the market, resulting in better and fairer executions for
investors, as well as standardize the regulation of trading in listed
and OTC securities. In recognition of this important advance in
market structure, Pink OTC Markets is extending a free Real-Time
Level 2 Quotes trial to issuers of securities in the Pink Sheets
Current Information market tier for the next month. Investors using
Pink Sheets | Electronic OTC Markets - Quotation, Trading Systems will have access to real-time market maker quotes
in order to better monitor the execution of their limit orders.
Pink OTC Markets Announces Limit Order Protection Changes
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