Price Improvement rules.

Imported from previous forum

Hi,

This might not be completely FIX related but thought I get some feedback from business domain experts.

I hear that Price Improvement for OTCBB securities can sometimes be misused by traders to buy/sell stocks for themselves undercutting their clients.

anyone knows what this abuse is about ?

here is a link on otcbb ammendment that is supposed to prevent this:

http://www.otcbb.com/news/2001/generalnews/lopapprovalorder2.stm

I am trying to implement this rule into a product but trying to underestand the underlying reason for it rather than mechanically implement it.

J.