Series 57

If an OTC stock is quoted at $0.08, what is the minimum quote size?

10,000 shares

If an OTC stock is quoted at $0.15, what is the minimum quote size?

5,000 shares

If an OTC stock is quoted at $0.25, what is the minimum quote size?

2,500 shares

If an OTC stock is quoted at $0.75, what is the minimum quote size?

1,000 shares

If an OTC stock is quoted at $1.00, what is the minimum quote size?

100 shares

If an OTC stock is quoted at $174.99, what is the minimum quote size?

100 shares

If an OTC stock is quoted at $175.00, what is the minimum quote size?

1 share

What is the minimum quote size for an OTC stock priced from $0.0001 through $0.0999?

10,000 shares

What is the minimum quote size for an OTC stock priced from $0.10 through $0.1999?

5,000 shares

What is the minimum quote size for an OTC stock priced from $0.20 through $0.5099?

2,500 shares

What is the minimum quote size for an OTC stock priced from $0.51 through $0.9999?

1,000 shares

What is the minimum quote size for an OTC stock priced from $1.00 through $174.99?

100 shares

What is the minimum quote size for an OTC stock priced at $175.00 or higher?

1 share

If an OTC stock has a bid of $2.40, what is the minimum pricing increment (tick size)?

$0.01

If an OTC stock has a bid of $1.00, what is the minimum pricing increment (tick size)?

$0.01

If an OTC stock has a bid of $0.50, what is the minimum pricing increment (tick size)?

$0.0001

If an OTC stock has a bid of $0.0042, what is the minimum pricing increment (tick size)?

$0.0001

If an OTC stock has a bid of $0.000081, what is the minimum pricing increment (tick size)?

$0.000001

For an OTC stock with a bid of at least $1.00, what is the minimum pricing increment?

$0.01

For an OTC stock with a bid from $0.0001 through $0.99, what is the minimum pricing increment?

$0.0001

For an OTC stock with a bid below $0.0001, what is the minimum pricing increment?

$0.000001

If a broker-dealer relies on an IDQS's Rule 15c2-11 due diligence, within how long of the review becoming publicly available must it publish its OTC quote?

Within 3 business days

For a new issuer that filed a Securities Act of 1933 registration statement, how recently must the prospectus have become effective before Form 211 is filed?

Less than 90 calendar days before filing Form 211

For a new issuer using a Regulation A offering statement, how recently must the offering circular have become effective before Form 211 is filed?

Less than 40 calendar days before filing Form 211

For a catch-all issuer under Rule 15c2-11, how old may the balance sheet be when the OTC quote is published?

No more than 16 months old

For a catch-all issuer under Rule 15c2-11, what period must the P&L and retained-earnings statements cover?

The 12 months preceding the balance-sheet date

For the OTC piggybacking exception, what is the maximum number of consecutive business days that may pass without a quotation?

4 consecutive business days

After an OTC trading suspension terminates, for how long is the piggybacking exception unavailable?

60 calendar days

For the recently delisted security exception to Form 211, when must the security have traded on a national securities exchange?

The same day or the preceding business day

What minimum bid price must a company maintain for OTCQB?

$0.01

What current market value must a block generally have for a broker-dealer to qualify as a qualified block positioner?

At least $200,000

What is the minimum net capital requirement for a qualified block positioner?

$1,000,000

In the Chapter 1 market schematic, within how long are transactions generally reported?

10 seconds

What is the absolute minimum net capital requirement for a Nasdaq market maker, regardless of how few stocks it quotes?

$100,000

If a market maker quotes a stock with a bid price of $5 or less, how much net capital is required per security?

$1,000 per security

If a market maker quotes a stock with a bid price above $5, how much net capital is required per security?

$2,500 per security

What is the maximum net capital requirement for a Nasdaq market maker?

$1,000,000

Once Nasdaq approves a market maker to quote an additional security, when must the firm begin quoting it?

No later than the open of trading 5 business days later

How many letters are in a Nasdaq market participant identifier (MPID)?

4 letters

How quickly should a complaint regarding backing away generally be filed with regulators?

Within 5 minutes

What is the normal trading unit, or round lot, for a Nasdaq stock?

Generally 100 shares

What minimum size must a Nasdaq market maker generally quote on both the bid and offer during regular market hours?

At least 100 shares on each side

What is the smallest allowable Nasdaq order size?

1 share

What is the largest allowable Nasdaq order size?

999,999 shares

When does the displayed portion of a Nasdaq reserve order refresh from the reserve?

When displayed size falls below 1 round lot (100 shares)

For an NMS stock priced below $1, what is the minimum quotation increment?

$0.0001

For an NMS stock priced at least $1 with a TWAQS greater than $0.015, what is the minimum quotation increment?

$0.01

For an NMS stock priced at least $1 with a TWAQS of $0.015 or less, what is the minimum quotation increment?

$0.005

How many TWAQS evaluation periods occur each year?

2 evaluation periods

How long is each TWAQS evaluation period?

3 months

In what months can NMS tick sizes be adjusted based on TWAQS?

May and November

How frequently can TWAQS-based minimum pricing increments potentially change?

Every 6 months

For a NEW quote in a Tier 1 NMS security, what is the normal designated percentage from the NBBO?

8%

For a NEW quote in a Tier 2 non-Tier-1 NMS stock priced at $1 or more, what is the designated percentage?

28%

For a NEW quote in a Tier 3 non-Tier-1 NMS stock priced below $1, what is the designated percentage?

30%

For a NEW quote in a right or warrant, what is the designated percentage?

30%

During the special market-open and market-close periods, what is the Tier 1 designated percentage for NEW quotes?

20%

During what opening time period does the Tier 1 designated percentage increase to 20%?

9:30 AM–9:45 AM ET

During what closing time period does the Tier 1 designated percentage increase to 20%?

3:35 PM–4:00 PM ET

For an EXISTING Tier 1 quote, what is the normal defined limit from the NBBO?

9.5%

For an EXISTING Tier 2 non-Tier-1 NMS stock priced at $1 or more, what is the defined limit?

29.5%

For an EXISTING Tier 3 non-Tier-1 NMS stock priced below $1, what is the defined limit?

31.5%

For an EXISTING quote in a right or warrant, what is the defined limit?

31.5%

During the special market-open and market-close periods, what is the Tier 1 defined limit for EXISTING quotes?

21.5%

What is the easiest number pattern to distinguish designated percentages for NEW quotes from defined limits for EXISTING quotes?

NEW = 8% / 28% / 30%; EXISTING = 9.5% / 29.5% / 31.5%

During what hours can Nasdaq market makers and ECNs generally enter quotes into the Nasdaq system?

4:00 AM–8:00 PM ET

If a Nasdaq market maker voluntarily terminates quotations in a security, how long must it generally wait before re-registering in that security?

20 business days

For a religious-holiday excused withdrawal, how far in advance must the Nasdaq market maker generally apply?

At least 1 business day in advance

For a vacation-based Nasdaq excused withdrawal, how many Nasdaq terminals may the firm have?

3 or fewer Nasdaq terminals

For a vacation-based Nasdaq excused withdrawal, how far in advance must the firm generally apply?

At least 1 business day in advance

How long may a Nasdaq market maker generally receive an excused withdrawal for vacation, religious holiday, or equipment malfunction?

Up to 5 business days

How long may a Nasdaq market maker receive an excused withdrawal for legal or regulatory reasons, such as involuntary termination of a clearing agreement?

Up to 60 days

What specific time limit applies to an excused withdrawal for investment-banking activities?

No specific time limit; duration depends on the circumstances

If a market maker withdraws because of its own technical/system malfunction, how long may Nasdaq Market Operations grant the withdrawal?

Up to 5 business days

After accidentally withdrawing from a stock, how quickly must a Nasdaq market maker notify MarketWatch to seek immediate reinstatement?

Within 1 hour

If a market maker quotes fewer than 250 stocks, how many accidental reinstatements may it receive per year?

2

If a market maker quotes 251–499 stocks, how many accidental reinstatements may it receive per year?

3

If a market maker quotes 500 or more stocks, how many accidental reinstatements may it receive per year?

6

When does Nasdaq begin disseminating Opening Cross order-imbalance information every second?

9:28 AM ET

During what period is Opening Cross order-imbalance information disseminated every second?

9:28 AM–9:30 AM ET

At what time does the Nasdaq Opening Cross occur?

9:30 AM ET

At what time do MOO and LOO orders become restricted from further entry, cancellation, or modification?

After 9:28 AM

When may a MOO order generally be entered?

From 4:00 AM until immediately before 9:28 AM

After what time may an OIO order generally no longer be cancelled or modified?

After 9:28 AM

Until what time may an OIO order still be entered?

Until the Opening Cross executes at 9:30 AM

When does Nasdaq begin disseminating Closing Cross order-imbalance information every second?

3:55 PM ET

During what period is Closing Cross order-imbalance information disseminated every second?

3:55 PM–4:00 PM ET

At what time does the Nasdaq Closing Cross occur?

4:00 PM ET

At and after what time can MOC orders no longer be entered, cancelled, or modified?

3:55 PM

After what time can an existing LOC order no longer be cancelled or modified?

3:55 PM

Until what time may a new LOC order still generally be entered?

Until 3:58 PM

At and after what time can an LOC no longer be entered, cancelled, or modified?

3:58 PM

After what time can a CIO order no longer be cancelled or modified?

3:58 PM

Until what time may a CIO order still be entered?

Until the Closing Cross executes at 4:00 PM

How frequently does Nasdaq disseminate Opening and Closing Cross order-imbalance information during the key cross periods?

Every second

How long does the quote-only phase of a Nasdaq Halt Cross usually last?

5 minutes

How long is the automatic Halt Cross extension that may be triggered by high volatility?

1 minute

For a Nasdaq Halt Cross, what price movement qualifies as high volatility for the automatic extension?

10% or $0.50, whichever is greater

What are the ADF's operating hours?

8:00 AM–6:30 PM ET

How far in advance must an ADF Participant Agreement generally be submitted before the firm expects to begin participating?

At least 6 months