The SEC's proposed amendments would modify Rule 15c2-11, which establishes information gathering and review requirements for broker-dealers that publish quotations or maintain continuous quoted markets for securities in the over-the-counter market. The changes would explicitly limit the rule's scope to equity securities only.
Rule 15c2-11 has historically focused on preventing manipulative and fraudulent trading schemes in OTC equity markets since its adoption. The proposed amendments would codify what the SEC characterizes as the rule's intended application, removing any ambiguity about whether non-equity securities fall within its scope.
The proposal does not appear to impose new substantive requirements on broker-dealers, instead serving as a clarification of existing regulatory obligations. Broker-dealers currently subject to Rule 15c2-11's quotation and market-making requirements for OTC equity securities would continue to face the same information gathering and review duties.
The proposed rule change comes as the SEC continues broader efforts to modernize and clarify its regulatory framework across different asset classes. The commission has increasingly emphasized the need for asset-specific regulations rather than broad rules that may not account for differences between equity, debt, and derivative markets.
"This proposal would clarify regulatory obligations when publishing quotations and affirm what was always understood: Rule 15c2-11 applies to equity securities," Chairman Atkins said in the announcement.
The proposing release will be published in the Federal Register, triggering a 60-day comment period for public input on the amendments. The commission will review submitted comments before determining whether to adopt the proposed changes as final rules.