1. Background
With the introduction of a new system for over-the-counter (OTC) trading platforms that broker multi-party transactions of unlisted shares and fractional investments (i.e., OTC trading intermediaries),
it is necessary to regulate unfair business practices to ensure investor protection and maintain fair market order.
2. Regulatory Details
Unfair business practices by OTC trading intermediaries will be defined to include:
- Failure to comply with legally mandated business standards,
- Provision of margin lending or allowing short selling to induce excessive trading by investors,
- Offering research or analysis reports on specific securities,
- Unjustified discrimination in the selection of tradable securities without legitimate reasons.