OTC Equity Halts and Quotation Suspension
Chapters in this video
What this video covers
- How an OTC equity security is defined: an equity security that is not a national market system (NMS) stock, excluding restricted equity securities
- The three bases for a FINRA halt: a foreign regulatory halt, a derivative halt, and an extraordinary event
- Why a foreign halt based solely on a regulatory filing deficiency or operational reasons does not automatically trigger a FINRA halt
- How the extraordinary event standard includes potential disruption, and how trading resumes at the earlier of the basis ending or 10 business days elapsing
- How foreign and derivative halts begin from exchange, regulatory authority, or validated third-party notice, and why notice of an intent to resume trading is enough
- Why trading directly or indirectly, publishing a quotation, or posting an unpriced indication of interest in any quotation medium violates the standards of commercial honor during a halt
- How a market-wide NMS circuit breaker affects OTC equities, and how ADF quotation access differs from Trade Reporting Facility access, including the missing condition action in cross-facility language
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