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FINRA Rule 6460 Goes Effective Today; Greatly Benefits OTC Traders

Those who use Level2 (also known as L2) when trading on the Over-The-Counter (OTC) Market may have noticed a big difference today. Market makers (MMs) are now showing the full size of all limit orders since they no longer have the ability to mask the number of shares they are looking to purchase or sell.

This rule was originally implemented for exchange-listed stocks in 1997, but was just today extended to the OTC marketplace. Now OTC traders will have the ability to see the true number of shares market makers are offering or willing to purchase, allowing the investment community to potentially make better trading decisions.

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