SEC Approves rule change, NASD Notice to Members 00-41
On May 22, 2000, SEC approved a rule change that allows The Nasdaq Stock Market to impose trading and quotation halts in securities quoted in the OTC Bulletin Board.
Under the rule change, Nasdaq will halt trading in OTCBB issues in the following instances:
- the OTCBB security is dually listed on a foreign market or is registered with a foreign regulatory authority and a foreign regulatory authority or market halts trading in the security;
- the OTCBB security is a derivative or component of a Nasdaq or an exchange-listed security and Nasdaq or the exchange halts trading in the underlying security; and
- the OTCBB issuer does not timely provide the NASD with information required by SEC Rule 10b-17.
The rule change goes into effect on June 26, 2000.
The full release regarding the change is available at http://www.nasdr.com/pdf-text/0041ntm.txt