The SEC proposed amendments to Exchange Act Rule 15c2-11 that would explicitly limit the rule's scope to equity securities. The rule sets information gathering and review requirements for broker-dealers that publish quotations for, or maintain a continuous quoted market in, securities in the over-the-counter market.
Since its adoption, Rule 15c2-11's focus has been on preventing manipulative and fraudulent trading schemes in OTC equity markets. The proposed amendments would amend the rule to refer to only equity securities.
"Regulations should be appropriately tailored to fit the asset class to which they apply," said SEC Chairman Paul S. Atkins. "This proposal would clarify regulatory obligations when publishing quotations and affirm what was always understood: Rule 15c2-11 applies to equity securities."
The proposing release has been published on SEC.gov and will be published in the Federal Register. The SEC will accept public comments for 60 days following publication of the proposing release in the Federal Register.