OTC Markets Newsletter - February 2011
January 2011

Featured This Month:

FINRA Will Introduce Limit Order Display to the OTC Marketplace in May 2011

This May, Limit Order Display, originally implemented for exchange-listed stocks in 1997, will be introduced to the OTC marketplace. FINRA’s new Limit Order Display rule requires OTC market makers to display the price and size of any customer limit order that improves the price or size of their own published quote. Customers can request that their orders not be displayed or the market maker can choose to route an order to another firm that will comply with the rule.

Limit Order Display is the most recent in a series of new rules in the OTC marketplace that have long been applied in the exchange world. Effective this spring, these new rules govern locked and crossed markets, allow access fees to be included in published quotes, and restrict sub-penny quoting.

OTC Markets Group is dedicated to our clients and is available for questions at info@otcmarkets.com.

To learn more about FINRA's Limit Order Display policies, visit FINRA's website here: www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p122114.pdf.

OTC Market Trade Summary Latest OTC News
OTC Market Tier # Securities* Monthly $ Volume Avg. Monthly $ Volume
per Security
Market Capitalization
(in Millions)*
OTCQX® 190 $2,514,687,450 $13,235,197 $1,043,865
OTCQB® 3,903 $3,691,834,022 $945,896 $1,209,206
OTC Pink Current 1,973 $10,089,297,316 $5,113,683 $11,042,627
OTC Pink Limited 618 $985,161,933 $1,594,113 $13,381
OTC Pink
No Information
3,328 $245,380,782 $73,732 $163,218
Totals 10,030 $17,526,431,758 $1,747,401 $13,472,303

* Selected data as of March 31, 2011.

"Delisted Companies Part of Paradigm Shift to OTC Market Group's OTCQB" - AllPennyStocks.com (April 4, 2011)

OTC Markets Group Announces 2010 OTC Marketplace Trading Statistics (March 15, 2011)

FINRA Announces Changes to Filing OTC Corporate Actions (March 10, 2011)

 

OTC Market Regulation

Regulation A Changes Sought in the Small Company Capital Formation Act of 2011
In March, Representative David Schweikert (R-AZ) introduced a bill in the U.S. House of Representatives that seeks to improve access to capital for small companies. The Small Company Capital Formation Act proposes to increase the offering threshold from $5 Million to $50 Million for public offerings of smaller public companies exempt from SEC registration. See more here: Small Company Capital Formation Act of 2011; Regulation A Revival?

OTC QX OTC QB OTC Pink

Seventeen companies joined OTCQX in March, bringing the total number of OTCQX companies to 190.

A complete list of OTCQX companies is available on www.www.otcqx.com.

95% of priced quotes in all OTC equities are on the OTC Link platform.

The OTCQB marketplace continues to gain recognition as the marketplace for reporting OTC companies.

  • Number of priced quotes on OTC Link: 64,714 (95% of all priced quotes in OTC equities)
  • Number of priced quotes on the OTC Bulletin Board™: 3,431 (5% of all priced quotes in OTC equities)

For a full overview of OTCQB, view the fact sheet here: www.otcmarkets.com/content/ doc/ps/OTCQBfactsheet.pdf.

(Data as of March 30, 2011.)

Securities trading in OTC Pink No Information represent only 1% of the total dollar volume traded on the OTC market.

Companies that provide current information enjoy over 94% of the dollar volume traded on the OTC market.

Non-reporting OTC Pink companies have the opportunity to encourage liquidity by following the Alternative Reporting Standard. It is easy to upgrade to OTC Pink Limited Information by simply providing a current balance sheet, income statement, and total shares outstanding.

View a sample of what Limited Information disclosure looks like here: www.otcmarkets.com/content/doc /LimitedInformationExample.pdf

For questions, please contact OTC Markets Group . www.otcmarkets.com . 212-430-3690 . info@otcmarkets.com