2026-06242NoticeWallet

SEC Seeks Feedback on Taming Shady Over-the-Counter Trades

Published Date: 4/1/2026

Notice

Summary

The SEC is asking for feedback on extending a rule that helps stop shady trading of over-the-counter (OTC) stocks by making sure brokers check important info before sharing stock prices. This affects about 200 broker-dealers and a few trading systems, with a big time commitment of over 1.7 million hours yearly. If you’re involved in OTC trading, now’s the time to weigh in before the rule continues without changes.

Analyzed Economic Effects

4 provisions identified: 1 benefits, 3 costs, 0 mixed.

Large Estimated Compliance Time Burden

The SEC estimates the Rule 15c2-11 information collection creates a total annual burden of 1,771,343 hours, and that the Rule currently applies to 196 broker-dealers, one qualified interdealer quotation system (QIDQS), and one registered national securities association (RNSA).

OTC Quote Review Required to Curb Fraud

The rule requires broker-dealers to review specified information about an issuer before publishing or submitting quotations for over-the-counter (OTC) securities to help prevent fraudulent or manipulative schemes.

Volume of Form 211 Filings in 2024

In 2024, 266 Form 211 applications were filed to start publication or submission of OTC quotations: 76 concerned prospectus issuers/Reg. A/reporting issuers, 163 concerned exempt foreign private issuers, and 27 concerned catch-all issuers.

FINRA Filings Not Publicly Available

The collection of information that broker-dealers submit to FINRA for review and approval (e.g., Form 211 materials) is currently not available to the public from FINRA.

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Key Dates

Published Date
4/1/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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