Series 99: 2.2.6.2 OTC Equity Securities

Taken from our Series 99 Top-off Online Guide

2.2.6.2  OTC Equity Securities

FINRA may also review OTC transactions if their prices exceed certain thresholds. Should FINRA declare an OTC transaction null and void, it must do so by 3:00 p.m. ET on the next trading day. The threshold price for an OTC equity transaction to be found clearly erroneous is as follows.

Reference Price

Numerical Guidelines

(Subject transaction’s percent difference from the reference price)

$0.9999 and under
  • • 20%

$1.0000 to $4.9999
  • • Low end of range minimum 20%–
  • • high end of range minimum 10%

$5.00 to $74.9999
  • • 10%

$75.0000 to $199.9999
  • • Low end of range minimum 10%–
  • • high end of range minimum 5%

$200 to $499.9999
  • • 5%

$500 to $999.9999
  • • Low end of range minimum 5%–
  • • high end of range minimum 3%

$1,000 and over
  • • 3%

Example: You submit a limit order over the counter t

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