Unlisted Trading Privileges - UTP

A form of securities regulation that gives exchanges the right to trade a security without meeting the minimum requirements. Unlisted trading privileges authorize trading even though the security is not listed or registered on the exchange. This is determined by the Securities and Exchange Commission (SEC) in the Exchange Act, and the UTP Act of 1994.

Unlisted trading privileges were developed in order to ease trading in securities across markets. While there is not a single, unified national securities market, allowing an exchange's members more flexibility in trading can help improve capital flows.

Unlisted trading privileges used to be granted by the SEC after an application process, but following the Unlisted Trading Privileges Act of 1994 they were granted automatically.