What is a 15c2-11?

A 15c2-11 is a relatively simple, cost-efficient filing process that, upon approval, provides a corporation with a market to publicly trade its registered securities. Our 15c2-11 focus at First London Securities is to assist private-domestic companies as well as domestically domiciled companies trading on foreign exchanges in filing the 15c2-11 and providing additional advisory services.

What is the application process for a 15c2-11?

The Company must first undergo due diligence by the broker/dealer, where particular attention is paid to the issuance of outstanding shares, to whom and at what price they were issued, and free trading versus restricted shares. The broker dealer then files a Form 2-11 with the NASD. The NASD returns comments within approximately one week. Once comments are sufficiently answered and the NASD declares the filing effective, the stock will trade on the OTC-Bulletin Board, subject to company becoming a reporting company under the Securities Echange Act of 1934. The entire process typically takes 90 to 120 days.

What is a market makers role in the initial trading of the company's stock?

The market maker stands ready to buy or sell a particular security. In the filing process, the broker dealer must justify the valuation of its bid/offer price to the NASD. Therefore, when approved, it is not uncommon for the market maker to post "no-bid, no-offer", unless there is an unsolicited customer order.

Which states can the stock trade in?

Manual exemption services, offered by both Standard and Poors and Moodys, currently "Blue Skies" Securities in 38 states. However, trades between dealers to domestic dealers as well as dealers to international dealers are exempt from the Blue Sky laws.

For more information, call us at (214) 220-0690 or send us email to nichols@firstlondon.com (for 15c2-11 Advisory Services) or nichols@firstlondon.com (for FLSC Institutional or Private Account Services).