OTC market maker definition

OTC market maker means any dealer that holds itself out as being willing to buy from and sell to its cus- tomers, or others, in the United States, an NMS stock for its own account on a regular or continuous basis otherwise than on a national securities exchange in amounts of less than block size.

OTC market maker. ’ means any dealer that holds itself out as being willing to buy from and sell to its customers, or others, in the United States, an NMS stock for its own account on a regular or continuous basis otherwise than on a national securities exchange in amounts of less than block size. See 17 CFR 242.600(b)(52). ‘‘NMS stock’’ means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan. See 17 CFR 242.600(b)(47).

Examples of OTC market maker in a sentence

• Eachspecialist or OTC market maker shall be deemed to have provided an opportunity for price improvement pursuant to paragraph (b) of this section, if the specialist or OTC market maker follows the procedures set forth in paragraph (d) of this section.

• One rule (Rule 605 under Reg NMS, formerly rule 11Ac1-5) requires market centers (defined to mean any exchange market maker, OTC market maker, alternative trading system, national securities exchange or national securities association) to make monthly, electronic disclosure of information concerning quality of execution.

• Under the current system, an OTC market maker may be trading a security at a better price than an exchange specialist (or vice versa) and the exchange specialist (or OTC market maker) is not able to access directly the better quote for non-Rule 19c–3 securities.Expanding the ITS/CAES linkage tonon-Rule 19c–3 securities should enable the OTC market maker and the exchange specialist to access directly those superior priced quotes through ITS, rather than potentially executing an order at an inferior price.

• In such transactions, because an agent is being interposed between an adviser's client and an OTC market maker, the adviser is possibly causing the client to pay more than the lowest available cost to execute the trade.

• Rule 11Ac1-5 defines the term “market centers” to include any exchange market maker, OTC market maker, alternative trading system, national securities exchange, or national securities association.

• Absent specific instructions from customers, Xxxxxx routes most orders in over-the counter ("OTC") securities to designated OTC market maker or third-market dealers based on an alphabetical selection process performed by a computerized system.

• Item 1 of Part III would require an NMS Stock ATS to disclose whether its broker-dealer operator (or its affiliates) operates or controls any non-ATS trading center that is an OTC market maker, executes orders in NMS stocks internally by trading as principal or crosses orders as agent.

• Storm offered at-least-once semantics via buffering and acknowledgements [81].

• Absent specific instructions from customers, Apex routes most orders in over-the counter ("OTC") securities to designated OTC market maker or third-market dealers based on an alphabetical selection process performed by a computerized system.

• If that non-Retail Liquidity Provider also holds a customer limit order to buy 500 shares at $10.01, the commenter states that the non-RLP would be obligated, under the current Manning rule, to sell the 500 shares to its client at $10.01 – losing $0.005 per share in the process.In response to this comment, the Exchanges stated that the Manning obligations of a Retail Liquidity Provider would be no different from the obligations on an OTC market maker that internalizes orders.