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 |
|
$1.0000 to $4.9999 |
|
$5.00 to $74.9999 |
|
$75.0000 to $199.9999 |
|
$200 to $499.9999 |
|
$500 to $999.9999 |
|
$1,000 and over |
|
Example: You submit a limit order over the counter t