15 U.S. Code § 78q–2 - Automated quotation systems for penny stocks
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The Congress finds that—
(1) the market for penny stocks suffers from a lack of reliable and accurate quotation and last sale information available to investors and regulators;
(2) it is in the public interest and appropriate for the protection of investors and the maintenance of fair and orderly markets to improve significantly the information available to brokers, dealers, investors, and regulators with respect to quotations for and transactions in penny stocks; and
(b) Mandate to facilitate establishment of automated quotation systems
(1) In general
The Commission shall facilitate the widespread dissemination of reliable and accurate last sale and quotation information with respect to penny stocks in accordance with the findings set forth in subsection (a) of this section, with a view toward establishing, at the earliest feasible time, one or more automated quotation systems that will collect and disseminate information regarding all penny stocks.
(2) Characteristics of systems
Each such automated quotation system shall—
(A) be operated by a registered securities association or a national securities exchange in accordance with such rules as the Commission and these entities shall prescribe;
(C) except as provided in subsection (c) of this section, provide bid and ask quotations of participating brokers or dealers, or comparably accurate and reliable pricing information, which shall constitute firm bids or offers for at least such minimum numbers of shares or minimum dollar amounts as the Commission and the registered securities association or national securities exchange shall require; and
(c) Exemptive authority
The Commission may, by rule or order, grant such exemptions, in whole or in part, conditionally or unconditionally, to any penny stock or class of penny stocks from the requirements of subsection (b) of this section as the Commission determines to be consistent with the public interest, the protection of investors, and the maintenance of fair and orderly markets.
(d) Commission reporting requirements
The Commission shall, in each of the first 5 annual reports (under section 78w (b)(1) of this title) submitted more than 12 months after October 15, 1990, include a description of the status of the penny stock automated quotation system or systems required by subsection (b) of this section. Such description shall include—
(1) a review of the development, implementation, and progress of the project, including achievement of significant milestones and current project schedule; and
Source(June 6, 1934, ch. 404, title I, § 17B, as added Pub. L. 101–429, title V, § 506,Oct. 15, 1990, 104 Stat. 955.)
References in Text
Section 78w (b)(1) of this title, referred to in subsec. (d), was omitted from the Code. For further details related to reports referred to in subsec. (d), see Codification note set out under section 78w of this title.
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