FINRA proposes to eliminate the OTC Bulletin Board Service
October 12th | 2020
FINRA recently filed a proposal to shut down the OTC Bulletin Board Service (“OTCBB”) and to adopt new requirements for member inter-dealer quotation systems. The proposal cites technological advancements since 1990 and the subsequent increase in alternative electronic venues with more extensive functionality than the OTCBB as the primary reasons that there is currently little to no quoting activity on the OTCBB.
FINRA believes it is appropriate to adopt new rules directly tailored to where OTC trading is happening now, which is through member-operated inter-dealer quotation systems. This is a sensible solution that seems consistent with the purpose of the OTCBB in the first place: to facilitate widespread dissemination of reliable and accurate quotation information in penny stocks, as required by Section 17B of the Exchange Act.