how are the otc markets regulated 
otc markets are regulated by the sec and finra the sec sets the overarching regulatory framework while finra oversees the day to day operations and compliance of broker dealers participating in the otc markets sec regulations include disclosure requirements and other regulations that issuers and broker dealers must follow the sec s rule 15c2 11 plays a critical role in regulating the otc markets by requiring broker dealers to conduct due diligence on the issuers of securities before publishing quotations for those securities 15 the rule mandates that broker dealers gather and review specific information about the issuer ensure that the information is up to date and publicly available and have a reasonable basis for believing that the information is accurate and the sources are reliable finra s responsibilities include monitoring trading activities enforcing compliance and handling disputes broker dealers must follow rule 15c2 11 when initiating or resuming quotations in otc securities which includes submitting form 211 to finra to demonstrate compliance 