We are very pleased to announce that Erik Nelson, President of Coral Capital Advisors, recently had the following article, “Listing vs. Settlements – Knowing the Difference and Understanding the Importance of Each” published in the Winter/Spring 2024 edition of Micro-Cap…
Tag: 15c2-11
Overview
The disclosure document pursuant to Rule 15c2-11 of the Exchange Act of 1934 that a registered broker/dealer submits to FINRA for approval to initiate the quotation of an Issuer’s securities on the Over the Counter (OTC) Market. Upon the publication of the initial quote, trading my be initiated in an Issuer’s securities. The sponsoring broker/dealer is generally the sole market maker for the 1st 30 days of trading. This is generally done to allow for an orderly market to develop.
The submission process is governed by FINRA Rule 6432.
Starting October 23rd, 2017, all broker/dealers are required to submit the 15c2-11 information statements electronically through the FINRA portal system.
Companies that are applying for an exchanging listing, NASDAQ or New York Stock Exchange (NYSE) are not required to have a 15c2-11 submitted on their behalf.
Approval Time:
The length of time to receive approval for the initiation of trading can vary greatly. As a general Rule of Thumb, companies that are listed on Foreign Exchanges are approved in less than two (2) weeks, and the approval of smaller domestic companies can take several months.
Additional Information
Additional information on the 15c2-11 process may be found by referencing Exchange Act Release No. 29094 (April 17, 1991).
Benefits of a US Listing
The Benefits of a US Listing for a Foreign Issuer There is substantial evidence that foreign companies whose shares trade in the United States enjoy a higher valuation than those companies whose shares simply trade in their domestic markets. The…
New Case Study: Resuming Trading Following a Trading Suspension
New Case Study: Resuming Trading Following a Trading Suspension Coral Capital Advisors has published a new Case Study: Case Study # 10: Case Study #10: Resuming Trading on the OTC Following a Trading Halt In this Case Study we take…
Questions in Request for Comments on Changes to Rule 15c2-11
Questions in Request for Comments on Changes to Rule 15c2-11 A couple of weeks ago, we published an article announcing the Securities and Exchange Commission (SEC) had officially published proposed changes to Rule 15c2-11. Officially tiled “Publication or Submission of…
Initial Statement on Proposed Changes to Rule 15c2-11
Coral’s Initial Statement on Proposed Changes to Rule 15c2-11 A couple of weeks ago, we published an article announcing the Securities and Exchange Commission (SEC) had officially published proposed changes changes to Rule 15c2-11. Officially tiled “Publication or Submission of…
The SEC’s Proposed Changes to Rule 15c2-11
The SEC’s Proposed Changes to Rule 15c2-11 The Securities and Exchange Commission (SEC) published on September 25th its proposed changes to Rule 15c2-11. Officially tiled “Publication or Submission of Quotation Without Specified Information.” A version of the proposed changes to…
Gifting of Shares – Do Not Do It !
The gifting of shares of stock prior to taking a small cap company public can seem like a good idea. However, in reality it causes significant problems that can easily be avoided. In this blog post we take a look at those issues and how they can easily be avoided.
FINRA Adopts New Electronic Form 211
FINRA recently published Regulatory Notice 17-26, mandating the use of the electronic Form 211. Beginning on October 23rd, 2017, firms must begin using the electronic Form 211, instead of the current paper submissions. What this does is effectively eliminate the current process of submitting the information required pursuant to SEA Rule 15c2-11 by way of a paper submission.
Welcome to DTC Eligibility & 15c2-11 News and Commentary
Welcome to our blog on News and Information concerning DTC Eligibility and 15c2-11 filings