what are unlisted trading privileges utp 
unlisted trading privileges utp refer to the processes around the trading of a security that is not required to meet certain minimum requirements to be traded on an exchange regulation for utp is detailed in the unlisted trading privileges act of 1994 understanding unlisted trading privileges utp utp were developed in order to help increase the liquidity of securities across markets that do not include registered exchanges utp give certain companies the ability to trade on an exchange without meeting the additional requirements required for each national securities exchange in which they choose to list their security the most common instance of unlisted trading occurs with over the counter otc shares also known as pink sheets which may include penny stocks historically utp were granted by the securities and exchange commission sec through an application process however congress in 1994 enacted the unlisted trading privileges act which changed the procedures for utp the new provisions required the company offering a security issuance and the exchange where the security is traded to work jointly in gaining authorization for utp from the sec 1unlisted trading privileges act of 1994the unlisted trading privileges act amended the securities exchange act of 1934 which serves as a primary governing legislation for the requirements for secondary market trading of securities in the united states the unlisted trading privileges act provisions are detailed in u s code title 15 section 78 l f this law allows any securities exchange to extend utp to any company that meets the specified provisions detailed in the act the company must be fully compliant with the provisions preceding part f of the 1934 securities act which discusses the standards required for national securities exchange listing 1the unlisted trading privileges act of 1994 was developed on principles that seek to cultivate fair and efficient market trading as well as protections for all parties involved therefore all decisions surrounding utp seek to consider and maintain certain principles key provisions of the utp act include 