SEC Provides Rule 15c2-11 Relief to Broker-Dealers for Fixed Income Securities

SEC Provides Rule 15c2-11 Relief to Broker-Dealers

Securities and Exchange Commission (“SEC”) Rule 15c2-11 prohibits broker-dealers from publishing or submitting securities of private issuers on the OTC Markets, unless the issuer has publicly filed current financial and other information.

On October 30, 2023, the SEC issued an order providing broker-dealers with an exemption from certain requirements of SEC Rule 15c2-11 of the Securities Exchange Act of 1934 (the “Rule 15c2-11 Exemption”). The SEC Rule 15c2-11 Exemption applies to fixed-income securities that are in compliance with the requirements of the safe harbor provided by Rule 144A. The SEC order for the Rule 15c2-11 Exemption excludes broker-dealers from the requirement that they provide certain public disclosures prior to  submitting or maintaining quotations on such securities in the OTC Markets.