The Over-The-Counter market is a magnet for microcap fraud, as the SEC itself has repeatedly warned.
Some intervention is certainly needed to limit the systemic risk posed by this largely unregulated, over-the-counter market.
Washington and Wall Street have been hesitant to clamp down on the over-the-counter market, the source of much profit-making.
In addition, FINRA will permit over-the-counter market participants to resume trading only if trading has resumed on at least one exchange.
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Trading will resume on the other exchanges and in the over-the-counter market once trading has resumed on the primary listing market.
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Kodak had said earlier today that delisting was likely, and that the stock would continue to trade in the over-the-counter market.
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Vietnam also has its version of the over-the-counter market, which specializes in listings of once-state-owned companies that have recently been privatized.
Once the company was listed on the Tokyo over-the-counter market in 1996, he had access to equity and other types of direct financing.
None of the shares was going to be traded on a major stock exchange, and the company said there were no assurances that the shares would trade on an over-the-counter market.
"The decision by the President's Working Group to recommend no detailed regulation of the over-the-counter market was wrong, " says David Ruder, a former SEC chairman and now law professor at Northwestern University.
The decision came as part of the Dodd-Frank act which mandated that the CFTC write rules to regulate the swaps, or over-the-counter market, in addition to their oversight of the futures market.
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Late Monday, Pegasus announced it was applying voluntarily to de-list its stock from the Nasdaq national market, with plans to move to another national market or the over-the-counter market by the end of October.
The Federal Housing Finance Agency, the companies' conservator, directed Fannie and Freddie to delist their shares, which they expect to be traded in the over-the-counter market under tickers that have yet to be assigned.
Peter Dolan , the chief executive of Bristol-Myers Squibb (nyse: BMY - news - people ), has apparently decided that the best way to avoid headaches is to stop dealing with the direct-to-consumer, over-the-counter market, and focus on pharmaceuticals.
Stocks in the Over-The-Counter market are quoted on systems like the OTC Bulletin Board, an electronic quotation system, and the Pink Sheets, which is not registered as a stock exchange and is named for the color of paper on which its listings of price quotes for companies have historically been printed.
Last year, as the subprime market began its collapse, the President's Working Group, which includes the Treasury Department, the Federal Reserve, the SEC and the Commodities Futures Trading Commission, recommended against tighter oversight of the over-the-counter market, in the context of vetoing tighter regulation of hedge funds, saying the industry can self-police.
And witness the split in the stockmarket between blue-chips such as Toyota, whose capitalisation is still three times that of the big three American car makers put together, and small, primarily domestic companies traded on the over-the-counter market, some two-thirds of which are trading for less than the net value of their assets.
In a meeting at the New York Fed Monday afternoon, 17 commercial and investment banks joined three fund managers (including the Chicago hedge fund Citadel Investment Group) and trade groups to talk about ways of providing better disclosure of the over-the-counter derivatives market, which is part of the so-called shadow banking system.
Along with Koch Industries, a privately held commodities giant, and Utilicorp United, a Kansas City-based utility, Enron is creating a new over-the-counter trading market in weather-risk management.
Part of the reason why the five biggest dealers do 96% of the trades in the over-the-counter derivatives market is because of their status as strong counterparties.
Along with Koch Industries, a privately held commodities giant, and Utilicorp United, a Kansas City-based utility, Enron is creating a new over-the-counter trading market in weather risk management.
For the SEC, going after the penny stocks trading on the Over-The Counter market is like shooting fish in a barrel.
Basically they merged with Desi TV, a publicly traded company (that couldn't dig up even a little info on), swapped the ticker symbol to XRMB, and started trading on the Over-The-Counter Bulletin Board securities market.
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Exchanges such as CME Group, Nasdaq OMX and NYSE Euronext are lined up to get a piece of the over-the-counter (OTC) derivatives market as new regulations will require derivatives trading to go through exchanges and be cleared through clearing houses.
It also sets high hurdles for returning Merck 's (nyse: MRK - news - people ) Vioxx to the market and describes the evidence the agency sees linking over-the-counter inflammatory pills such as Advil and Motrin to cardiovascular risk.
But the decision to decide to market a drug over-the-counter lies with the manufacturer.
The CFTC temporarily provides a broad exemption for over-the-counter (OTC) derivatives trading so the market can continue to operate as usual until regulators complete the new rules.
Earlier this month, the pharmaceutical company Pfizer announced that it may ask the Food and Drug Administration to allow it to market the cholesterol-lowering statin Lipitor over the counter after its patent expires in November.
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But that fact that Pharmanex sells any Cholestin at all indicates there is a market for over-the-counter cholesterol medications.
At present, while high-dose vitamins and minerals are readily available in the UK, over-the-counter sales are already outlawed in most EU countries, leading to a "black market" in vitamins with the UK as its source.
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