Source: https://www.ssb.texas.gov/february-26-2017
Timestamp: 2019-04-25 08:45:16+00:00

Document:
The Texas State Securities Board adopts an amendment to §109.7, concerning secondary trading exemption under the Texas Securities Act, §5.O, with changes to the proposed text as published in the October 14, 2016, issue of the Texas Register (41 TexReg 8159). In the provision concerning the information appearing on the OTC Markets Group website, the text has been changed to use the term "quoted" rather than "listing."
The list of recognized securities manuals enumerated in the rule has been updated.
Registered dealers relying upon the exemption provided by §5.O will have notice of the publications qualifying as "recognized securities manuals" for purposes of the exemption.
A comment was received from Whitaker Chalk questioning the use of the word "listing" since the OTC Markets is a quotation service rather than an exchange. Staff contacted the general counsel for the OTC Markets Group Inc. who commented that he was fine with the original language of the proposal and that a change to use "quoted" would also work. To avoid any confusion, the staff recommended the text of the published proposal be change to use "quoted" instead. The Board agreed and the rule was adopted with this change.
The adopted amendment affects Texas Civil Statutes, Article 581-5.O.
§109.7.Secondary Trading Exemption under the Texas Securities Act, §5.O.
(e) The term "recognized securities manual" as used in the Texas Securities Act, §5.O(9)(c), is limited to the S&P Capital IQ Standard Corporation Descriptions, Best Insurance Reports Life-Health, any Mergent's Manual, and the OTC Markets Group Inc. website (www.otcmarkets.com) for a company that is currently or has recently been quoted on the OTCQX or OTCQB markets. This designation encompasses both print and electronic data and includes periodic supplements to these publications. The information provided in the recognized securities manual must contain the information specified in subsection (d) of this section. All information provided must be current. The time for determining whether the entries are current is at the date of the particular sale, not the date the manual listings are published. If a listing is not continually updated, the exemption would not be available once the published balance sheet becomes more than 18 months old.
Filed with the Office of the Secretary of State on February 6, 2017.

References: §109
 §5
 §5

§109
 §5
 §5