OTC Markets Newsletter

More Transparency Comes to Stock Trading as “Odd Lot” Trades Get Reported To Consolidated Tape

As of December 9, “odd lot” stock trades, small trades below 100 shares, are being reported to the consolidated tape that publicly disseminates trade data on all U.S. stocks.  With this change, information on millions of odd lot trades is now widely visible, increasing transparency for all investors.

These changes reflect the rapid growth of odd lot trading in recent years.  According to a 2011 study, odd lots account for almost 5% of U.S. equity volume, an increase from less than 1% two decades ago.  In some cases, up to 60% of a company’s stock are traded as odd lots and so are hidden from the public feed.

The rise in the number of small and odd lot trades over the years has been attributed to a number of factors, including the high price of many stocks like Google Inc. and Apple Inc. that have made buying more than 100 shares a costly endeavor, the fact that more investor accounts are being managed by investment advisors to track optimum portfolios, as well as the rise of algorithmic trading that allows traders to slice and dice large trades into smaller orders to avoid “tipping off” the market about their interest in a particular security.

While the rule change is not expected to result in a significant increase in reported share trading volumes, it does help level the playing field for investors.  It will also help companies better understand the breadth of trading interest in their shares.

To read more about the SEC rule change on odd lots, click here.


Get to Know Your Community: Interview with Michael Goldsworthy, CEO of Silex Systems Limited

This month, we speak with Michael Goldsworthy, CEO of Silex Systems Limited (OTCQX: SILXY). The global clean energy company, which upgraded to the OTCQX marketplace in June, recently achieved an important milestone in the commercialization of its laser-based uranium enrichment technology in the U.S. Mr. Goldsworthy talks to us about the importance of accessing the U.S. capital markets for the company and the decision to join OTCQX as part of a broad strategy to build relationships with U.S. investors and to tell the company’s story.

OTC Markets Group: Tell us about Silex Systems Ltd.

Michael Goldsworthy: Silex Systems Limited (OTCQX: SILXY), is a global clean energy company, focusing on the development and commercialization of innovative and potentially disruptive energy technologies.

Our foundation technology is the SILEX (Separation of Isotopes by Laser EXcitation) laser enrichment technology, which we believe to be a game changing innovation for the global uranium enrichment industry. Enrichment is the most difficult and costly step in making nuclear fuel for power reactors (up to 40% of the total cost), and SILEX replaces 1st and 2nd generation diffusion and centrifuge technologies as a more efficient method of uranium enrichment.

Click to read more.

The SILEX technology is being developed by Global Laser Enrichment (GLE), a consortium of GE (51%), Hitachi (25%) and Cameco (24%) in Wilmington, North Carolina and is the world’s only third generation method of laser-based uranium enrichment.

In addition to the core SILEX technology, Silex operates 3 subsidiary divisions:

  1. Solar Systems, based in Melbourne, Australia, has developed ultra-high efficiency concentrating photovoltaic (CPV) technology based on its proprietary ‘Dense Array’ dish concentrator system, targeting deployment of utility-scale solar power station projects in key global markets;
  2. Translucent, based in Palo Alto, California, produces novel semiconductor materials technology for power electronics, photonics and solar cells; and
  3. ChronoLogic, in Adelaide, Australia, focuses on high precision timing and control products targeting applications in the electronic instrumentation markets.

OTCM: You upgraded your ADR program to the OTCQX marketplace in June. What caused you to make that change?

MG: As our primary asset, the laser-based uranium enrichment technology is based in the US, it is important that we promote greater awareness of our technologies for future access to US capital markets. By joining the OTCQX, we are now able to provide US investors with timely news and information to help them better analyze, value and trade our securities.

About 80% of US traders cannot buy and sell outside of the US, so without an appropriate trading instrument, we would miss out on a large and important group of potential investors. Cross listing allows us to increase our liquidity and to be closer geographically to that key investment audience.

More broadly, trading on OTCQX is part of a broader strategy to significantly increase awareness of Silex in the US market, particularly as we move towards commercializing our SILEX uranium enrichment technology in the US with Global Laser Enrichment (GLE).

OTCM: You recently achieved an important milestone in the commercialization of your laser-based uranium enrichment technology in the U.S. Tell us more about that and your operations in the U.S.

MG: In May of this year, we received confirmation from Global Laser Enrichment (GLE) that our SILEX laser-based uranium enrichment technology had passed a critical milestone – referred to as the Test Loop Program Phase I Milestone – which involved advanced technology demonstration and validation. The successful completion of the Phase I Milestone was preceded in September 2012 by the US Nuclear Regulatory Commission’s (NRC) approval of the world’s first license to construct and operate a commercial SILEX laser enrichment plant in Wilmington, North Carolina.

Completing Milestone I was a significant achievement in our three phase commercialization plan for SILEX. To mark the achievement, a US$15 million milestone payment was made to Silex Systems, which contributed significantly to our healthy financial position. We are now fully focused on Phase II of the Commercialization Program with GLE, which includes economic and engineering validation of the technology and full scale-up for the construction of the initial commercial production module. Once optimized, this module would be replicated several times to build out the world’s first laser enrichment plant.

In addition to Wilmington, a commercial plant opportunity is being evaluated involving the site of a now decommissioned 1st generation gaseous diffusion uranium enrichment plant in Paducah, Kentucky. This opportunity would potentially involve the processing of hundreds of thousands of tons of depleted uranium tails inventories, which are owned by the US Department of Energy (DOE), into natural uranium. We will update the market in due course.

The put this in a broader perspective, the uranium enrichment market is worth about US$6 billion annually and we see our technology as being core to driving the efficiency of uranium enrichment. Once the technology is commercialized, Silex will receive ongoing royalties in perpetuity of between 7% and 12% (depending on the capex per unit of installed capacity) of the revenues generated by GLE from using the SILEX technology.

OTCM: In July, Solar Systems, your solar power business, celebrated the official opening of its 1.5MW Solar Demonstration Facility in Mildura, Victoria. You are also building a 1MW plant at the Nofa Equestrian Resort near Riyadh, Saudi Arabia. Tell us about those projects.

MG: The 1.5MW Demonstration facility in Mildura, Victoria in south eastern Australia is the country’s largest solar CPV power station and is now connected to the grid and providing enough energy to power up to 500 average homes at peak power. The Demonstration Facility is a precursor to a potential 100MW power station at the same location – enough to power up to 40,000 homes – which would make it one of the largest CPV plants in the world.

Construction of the 1MW facility at the Nofa Equestrian Resort near Riyadh, Saudi Arabia - the first offshore deployment of Silex’s solar power technology - is well advanced. The Kingdom of Saudi Arabia has pledged to spend around $US109 billion constructing 40GW of solar power, so this project is an important step in forging an ongoing business in that region.

OTCM: How important is the U.S. market to your overall investor relations program? And how are you planning to reach U.S. investors?

MG: With US fund managers controlling about US$15 trillion in assets, we consider the US market crucial to our success – both from an investor and a customer standpoint. We have a dedicated Investor Relations plan in place and have been actively telling the Silex Systems story through a series of recent road shows and investor presentations. We understand how important it is to ensure that investor relationships are well serviced, so we visit the US several times per year, and also make our investor material available through a number of means, including investor conference calls, webcasts, newsletters, regular presentation updates and announcements.

OTCM: What else do you want U.S. investors to know about Silex Systems?

MG: Silex Systems is focusing on what we call ‘disruptive’ energy technologies for a number of reasons.

While energy is the core of the modern industrial economy and vital to economic growth, the global energy industry is undergoing disruptive change. This is being driven by the transition to clean energy, and the need for sustainable energy independence to address national security issues.

Energy costs are also steadily rising around the world as the costs of fossil fuels increases and energy consumption accelerates.

It has been a long path for Silex Systems from research and development to working towards commercialization, but 2013 was a breakthrough year. Investors can expect to see Silex progress over the next 12 to 18 months as we announce further updates on the SILEX technology, our solar power business and other commercial opportunities regarding our semiconductor materials technology and instrumentation businesses.

Overall, it’s an exciting time for Silex Systems and we hope US investors are equally enthused with the potential of this company.

We will be visiting the US in December 2013 and invite any investors interested in meeting for a briefing to contact our investor relations representative, Jane Lowe, via jlowe@buchanwe.com.au or +61 2 9237 2800.

Click to close.

American Depositary Receipts (ADRs) Explained:

American Depositary Receipts (ADRs) are foreign equity securities that have been ‘Americanized’ – wrapped in such a way that allows U.S. investors to purchase these foreign equity securities in the U.S. as they would any other U.S. security.” See our most recent video with Jason Paltrowitz, Executive Director at OTC Markets Group.


Click to Play Video


Contact Corporate Services at 212.896.4420 or issuers@otcmarkets.com to learn more about American Depositary Receipts (ADRs).

Monthly Trade Summary — November 2013

Marketplace Designations # Securities* Monthly Dollar Volume Monthly Dollar Volume
per Security
Aggregate Market Capitalization
(in Millions)*
OTCQX® 372 $2,344,433,403 $6,302,240 $1,545,932
OTCQB® 3,161 $10,134,259,778 $3,206,030 $235,107
OTC Pink® Current Information 2,942 $7,234,581,497 $2,459,069 $12,499,239
OTC Pink Limited Information 523 $88,354,584 $168,938 $13,270
OTC Pink No Information 3,035 $959,857,463 $316,263 $60,791
Totals 10,033 $20,761,486,726 $2,069,320 $14,354,340
* Selected data as of November 30, 2013.

Events & Sponsorships

OTC Markets Group has attended or will attend the following events to educate investors, broker-dealers, and OTCQX, OTCQB and OTC Pink companies about our marketplaces.

Bank Director's Acquire Or Be Acquired Conference (January 26-28, 2014)

OTCQX Senior Executive Forum and Cocktail Reception in Toronto (December 12, 2013)

Webinar on U.S. Marketplace Options for TSX and CNSX Listed Companies (December 3, 2013)

LD Micro Conference (December 3-5, 2013)

STANY's 23rd Annual International Reception (November 20, 2013)

The PIPEs Conference 2013 (November 4, 2013)


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




LiqTech Graduates to NYSE MKT from OTCQX

“Trading on OTCQX has helped us grow our business model, provide our shareholders with high quality information and attract attention from institutional investors and other buy-side investors. It has also helped us increase our visibility with customers, which has led to new sales of our products. We recommend other European companies consider exploring the potential of trading on OTCQX.”

- Aldo Petersen, Chairman of LiqTech (NYSE MKT: LIQT)


Cromwell Coulson, CEO, OTC Markets Group speaks to BNN about the state of Canadian company cross-listings in the U.S. - BNN/Business News Network (December 12, 2013)

Seeking Alpha Now Displays OTCQX, OTCQB and OTC Pink Marketplace Designations - press release (December 18, 2013)

Why Your Company Needs an ADR -The Pick (December 2013)

LiqTech International to Uplist to NYSE - The Deal Pipeline (December 2, 2013) (subscription required)

SeekingAlpha Lists OTC Markets Data, Links - WatersTechnology.com (December 19, 2013)

OTC Markets Group Congratulates Energy Fuels Inc. on NYSE MKT Listing - press release (December 3, 2013)

OTC Markets Group Congratulates LiqTech International on NYSE MKT Listing - press release (December 2, 2013)

Product Updates

OTC Markets Group has formed several relationships to help companies more effectively share their information and increase transparency for investors through our OTC Disclosure & News Service. Below are new features we added this year through these relationships.

PR Newswire

•   Cost-effective news distribution to local, national and Reg. FD compliant news portals through a single point-of-access, removing duplication and achieving wider distribution. Learn More.
•   International news distribution to news and online outlets in the U.K., Singapore and Canada. Learn More.
•   Seamless 8Ks/6Ks filings for SEC Reporting companies. Learn More.


•   Press releases distributed through Marketwired are automatically displayed on www.otcmarkets.com websites and distributed to broker-dealers. Learn More.

New enhancements to the OTC Disclosure & News Service:

•   Videos, presentations and other investor relations materials
•   Add and distribute research reports
•   Offering Announcements under Regulation D and 144A

Free otciq.com account

•   Sign up for a free otciq.com account and receive a few basic tools, including market monitoring and the ability to update your company profile.

This year, financial sites, including MSN MoneySeeking Alpha, and SNL Financial, began displaying the OTCQX, OTCQB and OTC Pink marketplace designations, so that investors can more easily identify the largest, most liquid, and investor-focused companies trading on the best marketplace, OTCQX, as well as companies that provide disclosure to investors. Investors can also conveniently access OTC Markets Group real-time through a wide range of financial portals. See a complete list.

Sign up for an otciq.com account today. Contact Corporate Services at 212.896.4420 or issuers@otcmarkets.com to learn more.

Market Data Updates

•   Seeking Alpha now displays the marketplaces for OTCQX, OTCQB, and OTC Pink securities.

•   Real-Time Level 2 Quotes are available for Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) on www.otcmarkets.com for the month of December

•   The OTC Markets Multicast Data Feed (version 3.1) has been updated to include three new binary channels — OTC Link Trade Channel, Reference Data Channel, Reference Data with Cusip Channel — and additional data fields. The OTC Markets Multicast Data Feed specifications may be found here.

For more information, contact our Market Data Services at 212.220.2166 or marketdata@otcmarkets.com.




OTC Markets Group and OTC Link® ATS Holiday Schedule

Tuesday, 12/24/13 – early closing at 1pm
Wednesday, 12/25/13 – Closed
Wednesday, 1/1/14 – Closed

Regulation & Compliance

SEC Proposes for Comment Amendments to Regulation A.



The SEC has proposed for comment amendments to Regulation A to implement Section 401 of the JOBS Act.  The proposal, known as 'Regulation A+', can be found here.

Proposed Rule Change Relating to OTC Equity Trade Reporting and OATS Reporting



In November, FINRA filed with the SEC a proposed rule change on reporting of (i) over-the-counter (“OTC”) transactions in equity securities to the FINRA Facilities; and (ii) orders in NMS stocks and OTC Equity Securities to the Order Audit Trail System (“OATS”). The text of the proposed change and Federal Register Notice can be found here. Additional information can be found here.

SEC Proposes for Comment New Regulation Crowdfunding



The SEC has proposed for comment new Regulation Crowdfunding to implement the requirements of Title III of the JOBS Act. The proposed rule can be found here.

Comment Period for Reg D, Form D and Rule 156 Re-opened



The SEC has re-opened the comment period for Amendments to Regulation D, Form D and Rule 156. Comments received can be found here. A White Paper released by the Division of Economic and Risk Analysis on capital raising in the U.S. through unregistered offerings using the Regulation D exemption can be found here.

OTCQX - New Additions

4 new companies joined OTCQX in November:

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

Our Marketplaces

The Best Marketplace with Qualified Companies

The Venture Stage Marketplace with U.S. Reporting Companies

OTC Pink
The Open Marketplace with Variable Reporting Companies

For questions, please contact OTC Markets Group.
www.otcmarkets.com • 212-896-4420 • info@otcmarkets.com

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