If a security is quoted on the Electronic Pink Sheets and the OTC Bulletin Board, will a broker/dealer have to check both quotation sources to achieve best execution for the firms customers?
Yes. Best execution requires that a firm make use of all technology reasonably available to it and when reliable, take into consideration superior priced orders that are resident in electronic systems that reasonably and readily accessible. Since both systems would be readily available to most broker/dealers, a broker-dealer should review the quotations on both quotation systems before executing a customer transaction.
Related Questions
- If the Electronic Pink Sheets displays three active priced quotations, is a broker/dealer required to call the market makers to verify their quotations appearing on the Electronic Pink Sheets?
- If a security is quoted on the Electronic Pink Sheets and the OTC Bulletin Board, will a broker/dealer have to check both quotation sources to achieve best execution for the firms customers?
- How long does it take to go public direct on OTC Bulletin Board or Pink Sheets?
