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OTC Markets Newsletter - December 2011
December 2011

OTC Securities Held by Major Institutional Investors

Today, OTC traded companies are held in portfolios managed by many of the largest institutional money managers, including Fidelity, Invesco, Oaktree, Vanguard, and over 2,000 other leading firms.

Why? Over the last decade, OTC Markets Group has dedicated itself to building a more efficient marketplace for OTC securities. The result of this effort is that all investors can now easily gather the information needed to intelligently analyze some of the world’s most interesting investment opportunities, from undiscovered gems and turnarounds, to the strong global champions traded on OTCQX International, such as Lufthansa, Roche and Wal-Mart de Mexico, and trade these securities through the broker of their choice.

As the quality and diversity of companies traded on the OTC marketplace continues to expand, we expect that more and more institutional firms will expand their holdings in OTC securities.

For an alphabetical list of some of the major buy-side firms that currently hold OTC securities, please click here: Top 100 Institutional Investors. For more information about this topic, please contact us anytime.

This month's community member - Thomas Kudsk-Larsen, RocheGet to Know Your Community:
Thomas Kudsk Larsen, Head of IR North America, Roche Holding

This month, we sat down with Thomas Kudsk Larsen, Head of Investor Relations North America at Roche Holding (OTCQX: RHHBY).  Roche was a founding company on OTCQX in 2007 and continues to be a great example of how a global brand uses OTCQX to reach U.S. investors.

Q: Roche has played a critical role in the healthcare industry for more than a century. Can you describe where Roche is today in the competitive landscape and the prospects for Roche’s future?
A: Roche, with the privatization of Genentech in 2009, is the world's largest biotech company and additionally the world-wide leader in in-vitro diagnostics. As a pioneer and leader in the field of personalized medicine, often defined as combining a medicine with a companion diagnostics test, Roche has a leading late-stage pipeline of at least 12 new products in order to support future business growth. The first of the new products, Zelboraf for metastatic melanoma was approved by the FDA in August 2011 and launched along with its companion diagnostic. Over the next year, Roche expects to launch at least two additional new products, vismodegib for basal cell carcinoma and pertuzumab on top of Herceptin for metastatic HER2+ breast cancer.

Q: Roche was one of the founding companies on OTCQX back in 2007. Can you describe Roche’s experience with using OTCQX for its U.S. ADRs over the past four years? Has it been successful?
A: Our experience on OTCQX has been very positive. We have seen an increase in the volume traded for our ADR since joining OTCQX, which is a great sign for the future of our company. We have also seen increased visibility for our investors, which was one of our main reasons for initially joining OTCQX. And, we’re given the attention we need – we can always reach the OTCQX with questions. We view joining OTCQX as a great solution for us.
Click here to read the entire interview.

OTC Market Regulation

FINRA Proposes Changes for Rule 6433:
FINRA filed a proposal to amend FINRA Rule 6433 (Minimum Quotation Size Requirements for OTC Equity Securities), published in the federal register on October 20, 2011. Under the proposed rule amendment, the minimum quotation size required for the display of an OTC Equity Security would fall into one of six tiers rather than the current nine tiers.

For full details on this proposal, please view the filing here:

Comments are available here:

Congressional Regulation Update:
In our October newsletter, we described our support of several pending Congressional bills intended to help small companies raise capital. We are happy to report that many of the bills were recently approved by the U.S. House of Representatives, and are now up for consideration by the Senate. Among the bills approved by the House are proposals to:

  1. Raise the mandatory SEC reporting threshold for banks from 500 to 2,000 shareholders, allowing banks to access a larger potential shareholder base without the risk of being subject to burdensome SEC reporting obligations (H.R. 1965);
  2. Amend the “Reg A” offering exemption to allow companies to raise up to $50 Million without being subject to ongoing SEC reporting obligations (H.R. 2930); and
  3. Allow general solicitation and advertising to accredited investors in a Rule 506 private placement (H.R. 2940).

OTC Markets Group is working with representatives of the U.S. Senate Committee on Banking, Housing and Urban Affairs, as well as other Senate offices, to help get these important initiatives approved in the Senate. We will continue to provide updates on the progress of these bills and other upcoming regulations affecting OTC market participants. We invite you to contact us if you have any questions or concerns about these bills or other regulatory issues.

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 marketplace.

49 North Resource Conference (December 13-14, 2011)

LD Micro Conference (December 8, 2011)

Hard Assets Conference (November 27-28, 2011)

Quebec Exploration Conference (November 22-24, 2011)

OTCQX Workshop (November 22, 2011)

STANY International Reception (November 17, 2011)

Southwest IDEAS Conference (November 16-17, 2011)

Marcum LLP - The OTC Marketplace: An Overview (November 3, 2011)

The PIPEs Conference 2011 (November 1-2, 2011)

SEC Roundtable on Microcap Regulation (October 17, 2011)


OTC News

NYSE Technologies SuperFeed Adds Unlisted Securities from OTC Markets Group (December 1, 2011)

Canadian Firms Try Different Route to U.S. Investors - Globe & Mail (November 24, 2011)

"OTCQX Wooing New Issuers, Competition" - PIPEs Report (November 1, 2011)

EDGAR Online, OTC Markets Group Partner to Develop and Distribute Unique Data Sets (October 19, 2011)

NYSE Technologies Adds OTC Markets Group as New SFTI Destination (October 13, 2011)

Fact of the Month

Dollar Volume in securities quoted on OTC Link™ totaled over $218 Billion by the end of November 2011, an increase of over 50% compared to the $144 Billion traded in all of 2010.

OTC Market Trade Summary - November 2011

OTC Market Tier # Securities* Monthly $ Volume Avg. Monthly $ Volume
per Security
Market Capitalization
(in Millions)*
OTCQX® 296 $1,585,551,310 $5,356,592 $969,032
OTCQB® 3,577 $2,186,950,197 $611,392 $130,666
OTC Pink Current Information 2,113 $5,660,617,546 $2,678,948 $10,428,654
OTC Pink Limited Information 668 $94,922,587 $151,920 $9,747
OTC Pink No Information 3,347 $333,763,107 $99,720 $66,128
Totals 10,102 $9,883,708,731 $978,391 $11,604,228
* Selected data as of November 30, 2011.

OTCQX - New this Month - New Additions: Approaching 300 Companies

Twenty-six companies joined OTCQX in the months of October & November, bringing the total number of OTCQX companies to 294 as of November 30, 2011.


A complete list of OTCQX companies is available on

OTC Market Tiers

The intelligent marketplace for investor-friendly companies with the highest financial standards and superior information availability.

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
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