Series 14: 2.9.10. Market Makers Of OTC Securities Must Conduct Due Diligence On Issuers

2.9.10. Market Makers of OTC Securities Must Conduct Due Diligence on Issuers

SEC Rule 15c2-11 requires market makers that quote securities on the OTCBB or OTC Link (the Pink Sheets) to conduct due diligence on the companies that issue the securities and the securities themselves. This due-diligence process includes obtaining and reviewing copies of the security’s prospectus or offering circular and the issuer’s financial documents. The relevant information must be obtained and reviewed by the market maker three days before submitting a quote in the security.

The SEC also requires market makers to attest to their compliance with the requirements of Rule 15c2-11 on Form 211. Form 211 must include copies of the documents that the issuer is required to provide and must also be sig