The over-the-counter (OTC) equity stock market in the United States is one of the largest and most robust in the world. The space has evolved into a complex landscape, defined by the dissemination real-time information, advanced statistics, market data, and compliance requirements.
With a multitude of informational resources, evolving standards for participants, and rigorous reporting requirements, the OTC equity markets are vast and complex, but can be rife with opportunity for investors that understand how to find information and do their diligence.
As such, it is critical for all market participants to obtain a better understanding of OTC Markets Group’s different market tiers and how they operate. OTC Markets Group, with over 12,000 U.S. and international securities trading on its platform, has become a trusted source, not only in terms of generating valuable information, but also in bolstering overall market standards.
Overcoming challenges by rethinking information
While no one entity can have a singular vantage point of the markets, OTC Markets Group has significantly improved the availability of information about OTC-traded companies by encouraging corporate disclosure, leveraging novel data sources and making this information available for free to investors on its website.
In 2021, OTC Markets Group acquired EDGAR Online®, a premium supplier of financial analytics and real-time SEC regulatory data, and Blue Sky Data Corp., a leading provider of compliance data on state law “Blue Sky” regulations for equity and debt securities. These acquisitions allow OTC Markets Group to be a one-stop destination for companies, investors and financial professionals looking to engage in the OTC equities space.
Actively building more efficient financial markets
Operating regulated markets means being relied upon for real-time data and resources.
2022 was a milestone year for both the OTCQX® Best Market ($106.3B annual dollar volume, $1.3T market capitalization, over 600 companies) and the OTCQB® Venture Market ($9.5B annual dollar volume, $37B market capitalization, over 1,200 companies). OTC Markets Group's OTCQX Market is for established, investor-focused U.S. and international companies, while the OTCQBMarket is for entrepreneurial and development stage U.S. and international companies.
In 2022, the OTCQX and OTCQB markets expanded their global reach. Companies based in Italy and Indonesia joined OTCQX for the first time, and an international law firm and a French firm joined as corporate sponsors for OTCQX and OTCQB companies.
Helping to make clearer investment decisions
OTC Markets Group offers a comprehensive product and information suite to brokers-dealers and investors.
Over 100 of the leading broker-dealers are connected to trade OTC securities, including leading industry firms like Citadel, Virtu, and Goldman Sachs. A full subscriber list can be found here.
Paving the way for better market infrastructure
Over 12,000 U.S. and international securities trade on the OTC Markets Group platform, and the company is focused on increasing its efforts in regulatory advocacy and growing its global presence.
A deep dive into OTC Market Group’s business strategy outlines a focus on six key pillars going forward:
1. Expanded Market Access: Making the world’s largest capital market accessible to companies while making a wide array of domestic and international companies accessible to the U.S. investor base.
2. Efficient disclosure standards: Allowing companies to use U.S. or international regulatory disclosures in lieu of SEC reporting and enabling investors to trade stocks in U.S. dollars during U.S. trading hours.
3. Recognition by US Federal and State Laws: Enabling companies to trade on a well-established public market subject to federal disclosure requirements and compliance with U.S. state Blue Sky laws.
4. Price Transparency and Liquidity: Providing companies with access to the same U.S. investors and brokers that trade on U.S. exchanges.
5. Pathway to go Public: Offering a path for companies to conduct an IPO or establish direct public trading, similar to a direct listing in order to raise capital and provide liquidity for their shareholders.
6. Policy Advocacy: Advocating for OTC-traded companies that provide quality disclosure, helping them to gain the same recognition as those traded on an exchange.
What makes OTC Markets Group unique?
As a provider of market data across multiple markets and segments, the company helps to inform investors of opportunity and risk in the OTC equities space. Using the company’s website and market data tools, investors can gain a unique vantage point into the OTC markets.
Thousands of users depend on the information and data from OTC Markets Group for their investment needs. The company has remained as the one name well positioned to answer any question or query in the OTC equity market space.
Over the past year, the company has achieved regulatory recognition, grown its market share, added over 400 companies to its premium markets, and added 21 broker-dealers to its trading systems. Looking ahead, OTC Markets Group will continue building and refining its market structure while expanding its data offering coming out of 2022’s key acquisitions.
About OTC Markets Group
OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX® Best Market, OTCQB® Venture Market and Pink® Open Market. Our OTC Link® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets.
OTC Link ATS, OTC Link ECN and OTC Link NQB are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC.
To learn more, visit www.otcmarkets.com.
