The Best Market
The OTCQX® Best Market offers transparent and efficient trading of established, investor-focused U.S. and global companies. To qualify for the OTCQX market, companies must meet high financial standards, follow best practice corporate governance, demonstrate compliance with U.S. securities laws, and have a professional third-party sponsor introduction. Penny stocks, shells and companies in bankruptcy cannot qualify for OTCQX. The companies found on OTCQX are distinguished by the integrity of their operations and diligence with which they convey their qualifications.
What is OTCQX and who is it for?
OTCQX is a U.S. market for companies already listed on a qualified international stock exchange. OTCQX enables global companies to better access support U.S. investors and distribute information in the U.S. public markets without the complexity and cost of an U.S. exchange listing.
The OTCQX market was established to solve a problem for global companies already listed on an international stock exchange. These companies know the importance of providing a U.S. market for investors to analyze, value and trade their securities, but previously had no choice but to list on the NYSE or NASDAQ: a process burdened with high cost and complex regulatory requirements.
Companies that want to inform and access U.S. investors now have an efficient and convenient alternative: OTCQX. OTCQX companies are not required to report to the SEC, and can avoid costly compliance processes by submitting their home country disclosure in English.
Companies understand that wide information distribution drives global liquidity. They want to make sure that their U.S. investors can access the same information as investors do in their home market. OTCQX provides tools to help global IROs widely distribute information to investors through a network of U.S. media and data partners.
As part of the approval process, OTCQX companies are required to submit an introductory letter from an approved OTCQX Sponsor. An OTCQX Sponsor can be either an approved investment bank, attorney or DR Bank. OTCQX Sponsors can also provide professional guidance to generate investor demand, build long term relationships, and assist the company in adhering to disclosure protocols.
Corporate IR Services
OTCQX provides a suite of services to help top global IROs effectively share company qualifications and distribute information to investors – simply.
OTC Disclosure & News: Publish and distribute data, news, and financials to a wide audience of investors.
OTCQX Companies use this service to demonstrate compliance using SEC Exchange Act Rule 12g3-2b and to distribute their home country financial information to U.S. investors. Companies post annual and interim reports, news releases, material events, investor videos, and presentations that appear on www.otcmarkets.com and the company quote page. Companies can also elect to have this information feed directly to PR Newswire’s expansive network, including local, national and Reg. FD-compliant news portals. OTC Disclosure & News also distributes fundamental data in XBRL format through EDGAR Online to investment databases and financial sites such as Yahoo! Finance.
Real Time Level 2 Quotes: Give investors access to real-time bid and ask price and size.
Investors want to see current available liquidity in a security. OTCQX includes sponsorship of real-time level 2 quotes – so all investors and market participants can see broker-dealer bid and ask prices and size, closely track market activity, and trade with confidence.
Blue Sky Monitoring: Expand investment advisors’ ability to research and recommend securities.
Blue Sky laws are U.S. state laws that regulate the offer and sale of securities. In order for regulated broker-dealers and investment advisors to be able to recommend, solicit or even discuss a security with investors in any of the 50 states or 4 U.S. territories, the security must comply with the blue sky laws of the state in which the investor resides.
Many companies are surprised to learn that their securities are not compliant with the Blue Sky laws in all 50 states and U.S. territories. Companies on OTCQX are typically automatically compliant in 38 – 45 states, and can independently work to gain compliance in additional states.
The OTCQX Blue Sky Monitoring Service offers companies a customized daily audit of state-by-state compliance and advance reminders on filing renewal deadlines, so they can track and expand their reach to a greater pool of U.S. investors.
OTC Market Report: Get a weekly summary of market performance and trading activity.
OTCQX companies get a concise visual summary of market performance and trading activity delivered weekly via email. OTC Market Reports can be easily redistributed to a company’s board of directors, management team, and shareholders.
OTC Link® ATS is an SEC registered Alternative Trading System that directly links a diverse network of leading U.S. broker-dealers providing liquidity and execution services in a wide spectrum of U.S. and global securities.
Its real-time price transparency and connectivity offers broker-dealers control of trades and choice of counterparties so they can efficiently provide best execution, attract order flow and comply with FINRA and SEC regulations.