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OTC Markets Newsletter - August 2012
August 2012


How OTCQX, OTCQB and OTC Pink Securities Trade

Our financial marketplaces give investors the ability to easily buy or sell almost 10,000 OTCQX, OTCQB, and OTC Pink securities through the broker-dealer of their choice, in a manner similar to trading securities listed on the NASDAQ Stock Market or the New York Stock Exchange. With a diverse network of FINRA member broker-dealers acting as continuous liquidity and execution providers, and widely distributed market data available, institutional, retail and online investors enjoy transparent pricing and efficient trading.

Investors can send orders to the broker of their choice, including online brokerages such as E*Trade, Fidelity, Schwab, Scottrade, and TD Ameritrade that offer their clients real-time pricing and point and click electronic trading. Investors can also analyze company information on many financial portals, including www.otcmarkets.com, Yahoo! Finance, and EDGAR I-Metrix. More and more major financial portals are now better informing investors by displaying the OTCQX, OTCQB, and OTC Pink marketplace designations on their quote pages, including CNBC, CNN Money, and Reuters.

The over 2,000 institutional investors holding OTCQX, OTCQB and OTC Pink securities in their portfolios can see real-time Level 1 and Level 2 quote data through most major financial data distributors, including Bloomberg, Interactive Data, NASDAQ OMX, NYSE Technologies, and Thomson Reuters.  

Companies can trade for free on the OTC Pink and OTCQB marketplaces. These companies can choose to provide a better marketplace for their investors by increasing price transparency, improving the availability of their financial information and demonstrating their compliance with state-by-state securities laws. The best companies can choose to qualify for OTCQX and provide their investors with the company and marketplace information they need to trade with confidence.

Contact us to learn more about our diverse network of liquidity and execution providers, market data products, and services designed to help companies create a better informed and more efficient marketplace for their investors to make smarter decisions when they analyze, value and trade their securities.

This month's community member - Mike Modeski, OTC Link LLCGet to Know Your Community:

Kenneth Sam, Partner, Dorsey & Whitney LLP

This month, we sat down with Ken Sam, Partner at Dorsey & Whitney LLP. Dorsey & Whitney serves as DAD/PAL and legal counsel for a number of OTC companies.

Q: Tell us a little bit about Dorsey & Whitney and the clients you serve.
A: Dorsey & Whitney LLP is an international law firm with approximately 550 attorneys serving clients from 19 offices in the United States, Canada, Asia, Europe and Australia. Dorsey is a full service law firm dedicated to providing our clients with quality legal services. Dorsey has one of the largest International Practice Groups that focuses on Canadian Cross Border Transactions, representing a broad range of Canadian-based clients with U.S. corporate finance, M&A, capital markets and other transactional and business matters. Dorsey is the only U.S. based law firm with offices in Toronto and Vancouver.

Q: How do you think the JOBS Act will impact your clients that are OTC-traded?
A: The JOBS Act is expected to present a number of opportunities for issuers by relaxing rules to access capital and providing relief to certain issuers from reporting and other regulatory obligations. Until the SEC adopts enabling rules, it will be difficult to assess the overall impact the JOBS Act will have on companies trading on or considering joining OTCQX.

Click here to read the entire interview.

OTC Market Regulation & Compliance

FINRA Rule 6433

On August 5, 2012 FINRA announced that the SEC-approved amendments to FINRA Rule 6433 (Minimum Quotation Size Requirements for OTC Equity Securities) will become effective on November 5, 2012. This has been approved as a 1 year pilot period. The new quotation sizes are as follows:

 

Price (Bid or Offer) Minimum Quote Size (# of Shares)
$0.0001 to $0.0999 10,000
$0.10 to $0.1999 5,000
$0.20 to $0.5099 2,500
$0.51 to $0.9999 1,000
$1.00 to $174.99 100
$175.00+ 1

 

For full details of this announcement, please see: FINRA Regulatory Notice 12-37.

Market Data Updates

Over 99% of all priced OTC quotes are now found on the OTC Link® ATS, with less than 1% of priced quotes on the FINRA OTCBB.

Retail investors will soon be able to access quote and marketplace information for all OTC securities using their TradeStation online brokerage account.

Investors can now view OTC marketplace information for the almost 10,000 OTC securities trading on our platform on Reuters.com.

Ellenoff                         Scottsdale                       AHT Insurance

Advertising

OTC Events

OTC Markets Group has attended or will be participating in the following events to educate investors, broker-dealers, and OTC companies about our marketplaces.

ACG Partners’ Boston 2012 Growth Conference (Oct. 16-17, 2012)

IR Magazine Think Tank – Canada 2012 (Oct. 10, 2012)

STA 79th Annual Conference (Sept.19-22, 2012)

South California Investment Conference (Aug. 30, 2012)

RB Milestone Investor Cocktail Event (Aug. 23, 2012)

Contact us if you are interested in meeting us at one of these events.

OTC Markets News

OTC Markets Group Announces Second Quarter 2012 Financial Results (Aug. 13, 2012)

OTC Markets Group's QAP Information Now Available on Bloomberg (June 25, 2012)

Edgar Online teams with OTC for data service - Washington Post (June 17, 2012)

Top OTC Firms, Including ADRs, Gain Market Visibility - Forbes (June 13, 2012)

OTC Market Monthly Trade Summary - July 2012

OTC Marketplace # Securities* Monthly Dollar Volume Avg. Monthly Dollar Volume
per Security
Market Capitalization
(in Millions)*
OTCQX® 385 $1,566,650,947 $4,069,223 $1,112,399
OTCQB® 3,510 $2,022,031,523 $576,077 $192,725
OTC Pink® Current Information 2,353 $4,686,456,412 $1,991,694 $9,053,941
OTC Pink Limited Information 645 $80,963,956 $125,526 $7,420
OTC Pink No Information 2,982 $274,297,216 $91,984 $27,359
Totals 9,875 $8,630,400,054   $10,366,485
* Selected data as of July 31, 2012.

Product Feature: Real-Time Level 2 Quote Display Service

Companies can sponsor Real-Time Level 2 Quotes to give their investors the ability to see the full depth of broker-dealer priced quotes in their security – all in real-time – on www.otcmarkets.com. Level 2 Quote Display refers to all of the broker-dealer bid/ask prices in a security, with each of the broker-dealer’s quote prices and size. While traditional stock exchanges sell this data to professional investors at a premium, OTC-traded companies may make this valuable information available to any investor, for free. Find out more >

 

 

 

OTCQX - New this Month - New Additions

Five companies joined OTCQX in the month of July.

  • American Eagle Energy Corporation (AMZG)
  • CreditRiskMonitor.com, Inc. (CRMZ)
  • Enhanced Oil Resources Inc. (EORIF)
  • Kingsrose Mining Ltd (KGRSY)
  • Tembo Gold Corp (TBGPF)

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

OTC Marketplaces

OTCQX
The intelligent marketplace for the best OTC companies with the highest financial standards and superior information availability.

OTCQB
The venture marketplace for companies that are current in their reporting with a U.S. regulator.

OTC Pink
The open marketplace for a wide spectrum of equity securities.

For questions, please contact OTC Markets Group.
www.otcmarkets.com • 212-430-3690 • info@otcmarkets.com
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© 2012 OTC Markets Group Inc.