Definition of Piggybacking a Quote

If an OTC security has been quoted by another dealer for a minimum of 1 day, the dealer may simply enter its own quote by piggybacking the current dealer’s quote without having to file form 211. This rule replaces the previous 30 day requirement to piggyback a dealer’s quote.

If a market maker piggiybacks a sole market maker’s quote and the original market maker stops quoting the security the market maker who piggybacked the quote in not required to file Form 211 or take any other action.

Applying "Piggybacking a Quote" to Securities Exams:

Securities that trade on the OTC MKT do not have to meet any listing standards other than being a reporting company with the SEC. A reporting company is one that files annual and quarterly reports via forms 10K and 10Q respectively. A reporting company must also file 8Ks to inform investors of material events taking place within the company. OTC securities contain a substantial amount of risk. Market markers who transact business in these securities must maintain a due diligence file to ensure that it has all of the important information relating to the OTC security. An initial market maker in an OTC security must file form 211 with FINRA to request permission to quote the security. FINRA will respond to the request within 3 business days. All subsequent market makers may piggyback the initial dealers quote without filing form 211. If a stock is desisted from the NYSE or the NASDAQ market makers may follow the stock down and quote it immediately on the OTC. Pass your series 24 exam with our Greenlight guarantee. Taking the series 57 exam ? review our training materials for the series 57 exam

Preparing for an Exam?

Receive 15% off all your Securities Exam Prep materials

Please wait....

Your Cart