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The OTCQX marketplace is the premier tier of the U.S. over-the-counter market.
Investor-focused companies use the quality controlled OTCQX listing platform to offer investors transparent trading, superior information and easy access through their regulated U.S. broker-dealers.
Pink OTC Markets Inc. provides the leading inter-dealer electronic quotation and trading system in the over-the-counter (OTC) securities market. We create innovative technology and data solutions to efficiently connect market participants, improve price discovery, increase issuer disclosure, and better inform investors. Pink OTC Markets operates the third largest U.S. equity trading venue which includes both the premier OTCQX market tier for investor-focused OTC-traded companies that can satisfy financial and disclosure listing standards and the Pink Sheets for all other OTC quoted securities.
Over 230 financial service firms, including the ten largest U.S. investment banks, actively make markets in OTCQX and Pink Sheets quoted securities and in 2008 these firms traded over $135 billion of OTCQX and Pink Sheets securities. Pink OTC Markets offers widespread access to all U.S. broker-dealers, enabling investors to seamlessly trade these securities through their institutional, online, or full service brokers.
Pink OTC Markets is headquartered in New York City.
OTC Markets Group Announces 2010 Trading Statistics
| Marketplace | | # of Securities at December 31, 2010 | | 2010 Dollar Volume (000'S) | | Avg. $ Volume per Security | |
| OTCQX | | 159 | | $15,267,394 | | $96,021,347 | |
| LSE AIM | | 1,194 | | 50,605,800 | | 42,383,417 | |
| OTC Pink | | 5,954 | | 95,736,805 | | 16,073,410 | |
| TSX Venture | | 2,376 | | 34,350,300 | | 14,457,197 | |
| OTCQB | | 3,851 | | 33,051,946 | | 8,582,692 | |
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| OTC Market Tier | | # of Securities at December 31, 2010 | | % of Total 2010 Dollar Volume | | Avg. 2010 Dollar Volume per Security | ||
| OTCQX | | 159 | | 10.6% | | $96,021,347 | ||
| OTCQB | | 3,851 | | 22.9% | | 8,582,692 | ||
| OTC Pink: | | | | | | | ||
| Current Information | | 1,830 | | 57.3% | | 45,153,368 | ||
| Limited Information | | 749 | | 7.6% | | 14,717,663 | ||
| No Information | | 3,375 | | 1.45% | | 617,070 | ||
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The OTCQX marketplace is the premier tier of the U.S. over-the-counter market.
Investor-focused companies use the quality controlled OTCQX listing platform to offer investors transparent trading, superior information, and easy access through their regulated U.S. broker-dealers. The innovative OTCQX platform offers companies and their shareholders a level of marketplace services formerly available only on a U.S. exchange.
Who Should List on OTCQX
Many U.S. companies list on OTCQX as the final step toward a NASDAQ or NYSE listing. Others enjoy the efficient compliance-driven model it offers their shareholders outside of a traditional exchange listing which may come with considerable cost savings. For companies moving off an exchange, OTCQX is the ideal home that provides most of the services they and their shareholders have come to expect on a listed market.
Why Investors Prefer OTCQX
Investors prefer the quality controlled listing process on OTCQX which identifies the segment of OTC-traded companies focused on valuation and transparency. Companies that list on OTCQX demonstrate their commitment to providing superior information to shareholders and maintaining the highest quality standards.
OTCQX is fully electronic and gives investors access through all major online and full-service brokerage firms in the U.S., including Schwab, E*TRADE, Scottrade, TD Ameritrade, and Fidelity. Trades are settled and cleared in the U.S. similar to any NASDAQ or NYSE security and trade reports are disseminated through Yahoo, Bloomberg, Reuters, and most other financial data providers.
In addition, Real-Time Level 2 Quote Display (full quote montage) is available free to the investing public.
Services to Issuers
OTCQX provides services to companies which enable them to stay informed about their trading activities, while OTCQX shareholders and investors benefit from transparent trading and easy access to company information.
OTCQX includes:
OTCQX provides the highest level of visibility and access to U.S. investors possible in the OTC Market.
OTCQX is the premium tier of the U.S. over-the-counter marketplace which gives non-U.S. companies a visible U.S. cross-listing without the duplicative regulatory costs required of listing on a traditional U.S. exchange. OTCQX companies use the quality controlled OTCQX listing platform to offer investors transparent trading, superior information, and easy access through their U.S. regulated broker-dealers. The innovative OTCQX platform offers companies and their shareholder a level of marketplace services formerly available only on a U.S. exchange.
Who Should List on OTCQX?
Reserved for international companies listed on a qualified stock exchange in their home country, OTCQX International provides easy access to U.S. investors and the ability for a company to diversify their shareholder base. OTCQX companies require a Level I Sponsored ADR program in the U.S. or a foreign ordinary that is DTC eligible (such as Canadian companies). This requirement helps ensure that only the best companies, which have already been pre-screened by a qualified foreign stock exchange's listing process, are eligible.
All OTCQX International companies appoint a qualified, third-party Principal American Liaison (PAL) sponsor to help them with the listing process, post disclosures in English, and be available as a trusted resource regarding all aspects of U.S. market protocols and investor information needs.
Why Investors Prefer OTCQX
OTCQX separates out the credible companies from the large number of economically distressed and questionable companies that trade OTC. Investors prefer the quality controlled listing process on OTCQX which identifies the segment of OTC-traded companies focused on valuation and transparency. Companies that list on OTCQX demonstrate their commitment to providing superior information to shareholders and maintaining the highest quality standards.
OTCQX is fully electronic and gives investors access through all major online and full-service brokerage firms in the U.S., including Schwab, E*TRADE, Scottrade, TD Ameritrade, and Fidelity. Trades are settled and cleared in the U.S. similar to any NASDAQ or NYSE security, and trade reports are disseminated through Yahoo, Bloomberg, Reuters, and most other financial data providers.
In addition, Real-Time Level 2 Quote Display (full quote montage) is available free to the investing public.
Services to Issuers
OTCQX provides services to companies which enable them to stay informed of their trading activities, while OTCQX shareholders and investors benefit from transparent trading and easy access to company information. Streamlined disclosure requirements allow OTCQX International companies to make their home country financial reporting publicly available on Pink OTC Markets' websites for easy access by U.S. investors. OTCQX International is the only highly visible electronic trading venue in the U.S. that does not require SEC registration.
OTCQX includes:
The OTCQX DAD / PAL program offers firms an opportunity to expand relationships with existing clients and attract new business, serving as a trusted professional with expert advice on financial disclosure and investor demand creation in the OTC market.
A Designated Advisor for Disclosure (DAD) or Principal American Liaison (PAL) is a sophisticated securities professional knowledgeable regarding the disclosure requirements of U.S. securities law and is appointed and compensated by an OTCQX-listed company. DAD eligibility is limited to reputable securities attorneys or to FINRA member investment banking firms. Each prospective DAD must submit an application to Pink OTC Markets to show evidence that the firm is qualified to be an OTCQX advisor.
OTCQX is a listing service offered by Pink OTC Markets Inc. that brings an innovative trading, quotation and disclosure venue to the U.S. over-the-counter markets. Designed to meet the particular needs of small to medium-sized U.S. public companies and non-U.S. companies listed on international stock exchanges, OTCQX aims to promote companies that have strong operating models and that provide high-quality disclosure to the marketplace. All U.S. domiciled issuers listed on the OTCQX are required to appoint and retain a DAD for ongoing guidance and advice on disclosure and other securities matters. Companies listed on a qualified stock exchange appoint a PAL.
The Primary Role of a DAD:
The Primary Role of a PAL:
How to Become an Advisor
Each advisor must submit a DAD/PAL Application to qualify as a DAD or PAL. The application must be submitted in conjunction with an issuer's application for OTCQX. Upon admission to the OTCQX, the advisor's name will be included on Pink OTC Markets' List of Designated Advisors. When an advisor is included on the List of DADs/PALs, the advisor is not required to re-submit an application to be the designated advisor for subsequent issuers.
The OTC market is made up of many different types of companies, ranging from OTCQX companies that strive to be worthy of investor consideration to economically distressed companies to speculative shell companies. The below chart explains the different OTC market tiers.
For more information about OTCQX, see www.otcqx.com.
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 | The OTCQX marketplace is the premier tier of the U.S. over-the-counter market. Investor-focused companies use the quality controlled OTCQX listing platform to offer investors transparent trading, superior information, and easy access through their regulated U.S. broker-dealers. |
 | The OTCQB market tier helps investors easily identify companies that are current in their reporting obligations with the SEC or report to a U.S. banking or insurance regulator. OTCQB securities are quoted on OTC Markets Group's quotation and trading system and some may also be quoted on FINRA's BB. See OTCQB Fact Sheet |
 | This security is one of approximately 30 OTC securities that are quoted solely on FINRA's BB quotation system so market makers must use the telephone to make any trades. |
 | Companies that follow the International Reporting Standard or the Alternative Reporting Standard by making filings publicly available through the OTC Disclosure & News Service pursuant to OTC Markets Group Guidelines for Providing Adequate Current Information (pdf) are designated as OTC Pink Current Information. The Current Information category is based on the level of disclosure and is not a designation of quality or investment risk. This category includes shell or development stage companies with little or no operations as well as companies without audited financials and as such should be considered extremely speculative by investors |
 | Designed for companies with financial reporting problems, economic distress, or in bankruptcy to make the limited information they have publicly available. The Limited Information category also includes companies that may not be troubled, but are unwilling to meet OTC Markets' Guidelines for Providing Adequate Current Information. Companies in this category have limited financial information not older than six months available on the OTC Disclosure & News Service or have made a filing on the SEC's EDGAR system in the previous six months. |
 | Indicates companies that are not able or willing to provide disclosure to the public markets - either to a regulator, an exchange or OTC Markets Group. Companies in this category do not make Current Information available via OTC Markets Group's News Service, or if they do, the available information is older than six months. This category includes defunct companies that have ceased operations as well as 'dark' companies with questionable management and market disclosure practices. Publicly traded companies that are not willing to provide information to investors should be treated with suspicion and their securities should be considered highly risky. |
 | There are no market makers in this security. It is not listed, traded or quoted on any U.S. stock exchange or the OTC Markets. Trades in grey market stocks are reported by broker-dealers to their Self Regulatory Organization (SRO) and the SRO distributes the trade data to market data vendors and financial websites so investors can track price and volume. Since grey market securities are not traded or quoted on an exchange or interdealer quotation system, investor's bids and offers are not collected in a central spot so market transparency is diminished and Best Execution of orders is difficult. |
 | Buyer Beware. There is a public interest concern associated with the company, which may include a spam campaign, questionable stock promotion, known investigation of fraudulent activity committed by the company or insiders, regulatory suspensions, or disruptive corporate actions. During the time it is labeled Caveat Emptor, any stock that is not in the Current Information category will also have its quotes blocked on otcmarkets.com. |
OTCIQ is a secure, web-based portal that provides issuers access to our innovative products and services to facilitate communication with the marketplace, promote transparency, mitigate risk, gather market intelligence, and inspire better corporate governance.
OTCIQ subscribers are assigned secure, personalized user credentials to manage the publication and dissemination of all of their corporate information and public disclosures. OTCIQ also provides issuers with access to in-depth market data regarding their own company's stock as well that of over 8,000 OTC securities.
