OTC Markets Newsletter
OTC Markets Group News JANUARY 2015
OTCQX Banks Index Launched

On January 26, OTC Markets Group announced the launch of the OTCQX Banks Index (.OTCQXBK), a new benchmark for tracking U.S. community and regional banks on the OTCQX marketplace. Read our official press release here.

The Index adds to the number of indexes tracking securities on OTCQX, our best marketplace, and highlights for investors the transparent, shareholder-friendly banks trading on OTCQX.

Since the spring 2014 launch of OTCQX for Banks, more than 40 banks from 15 states have moved their common stock to OTCQX to increase their visibility with U.S. investors. These include state and national banks, savings institutions and bank holding companies with an aggregate market capitalization of more than $1.7 billion and total assets of more than $20 billion.

Nine top broker-dealers specializing in trading and advising banks have been approved as Corporate Brokers for banks on OTCQX, including most recently Raymond James & Associates, Sandler O'Neill + Partners L.P. and Wedbush Securities.

The OTCQX Banks Index, a capitalization weighted index, will be re-balanced quarterly to reflect the growing number of banks on OTCQX. For a full list of index constituents, click here.

Banks interested in learning more about OTCQX for Banks and the OTCQX Banks Index can contact Corporate Services at 212-896-4420 or issuers@otcmarkets.com.
OTCQX FORUMS
[photo]Trans-Atlantic Information Flow: Making Sure North American Investors Don't See Blank Screens

OTC Markets Group and PR Newswire Event in Paris Highlights Successful US Investor Communications Strategies for European Companies.
COMMUNITY SPOTLIGHT
[photo]Interview with Bob Power, Corporate Client Relationship Director at OTC Markets Group

This month, we speak with Bob Power, who was recently appointed as OTC Markets Group's Corporate Client Relationship Director, a newly-created position. Mr. Power joins OTC Markets Group from The New York Stock Exchange (NYSE), where he served as Vice President and Co-Head of Sales for the Global Corporate Client Group, responsible for building relationships with over 1,000 NYSE-listed U.S. companies. He talks to us about increasing engagement and supporting service and technology offerings for the growing community of OTCQX and OTCQB companies as well as about what makes OTC Markets Group unique compared with the national stock exchanges.

OTC Markets Group (OTCM): What do you bring to OTC Markets Group from your experience at NYSE building relationships with companies and new listings?

Bob Power: I bring years of experience in working with CEOs, CFOs IROs and management of all different sized companies from industry sectors from around the world. I saw firsthand the importance of investor communication from the company's perspective.

Successful companies of all sizes have consistently cared about building value and having that reflected in their share prices via a tailored consistent IR approach. Having a marketplace that is open and transparent is vitally important to companies as well. OTC Markets Group's market structure provides the perfect platform of transparent liquidity. I look forward to getting to know a whole new set of growth oriented companies of all sizes in my new role.

Click to read more.

OTCM: In your new role at OTC Markets Group, you are responsible for increasing the company’s engagement with OTCQX and OTCQB issuers and “supporting the enhancement of OTC Markets Group's service and technology offerings.” What is your approach to increasing engagement with issuers and what goals do you have this year?

Mr. Power: OTC Markets Group has established excellent growth and recognition with the OTCQX and OTCQB markets. This growth has occurred by providing excellent liquidity and visibility through the efficient trading platform. My approach is to build upon the insightful trading information that is available on the platform and channel that data with as much color as possible through to the issuers at times when they most need to know it – such as increased volumes and price movements.

I also look forward to getting closely involved with some of the excellent investor relations programs that OTC Markets Group offers to companies throughout the year. Finally, getting to know the issuers and how we can best serve them with the most transparency and visibility in the market will be key to our success.

OTCM: What most excites you about working at OTC Markets Group?

Mr. Power: I love the entrepreneurial spirit at OTC Markets Group. All you have to do is walk around the company and it's so clear that everyone is excited about the growth of OTCQB and OTCQX. The company is lean enough so that everyone is truly on the same team and making a difference. There is a great vision for the future and CEO Cromwell Coulson and the management team have a passion that is contagious with the goal of continuing to provide the best marketplaces possible for issuers.

OTCM: Having worked at the nation’s largest stock exchanges, what do you think makes OTC Markets Group unique and what has surprised you most about working here so far?

Mr. Power: OTC Markets Group is unique in its growth rate in issuers over the past several years. The entrepreneurial spirit across the company with everyone marching toward the same goals of growth and customer service has been great.

There is sort of a "Silicon Alley" type approach in the NY office. The OTC Markets Group atmosphere reminds me of some of the companies I have visited in Silicon Valley, CA, which has been a bit surprising. For example I’ve worn a suit to work for many years. The dress code here is generally more casual which is great and the spirit to win is contagious!

OTCM: What else do you want OTCQX and OTCQB companies to know about you?

Mr. Power: I have worked for stock exchanges for so many years. I started out as a kid right out of college working in the options pits at the American Stock Exchange back in the days when floor trading got pretty crazy and hectic. That's where I developed a curiosity and fascination to learn about Wall Street. It was a natural extension for me to start working with issuers from there.

I see the chance to join OTC Markets Group as a great step to be with a visionary, technology driven, growth oriented marketplace operator. I really look forward to getting to know the companies of all sizes on the OTCQX and OTCQB as we provide the perfect trading platform for them to grow in the marketplace.

Click to close.

Light Up The Market
[photo]
Source Financial (OTCQX: SRCF)
Lights up the Market!


Follow us on Twitter at @OTCMarkets to keep up with OTCQX companies Lighting Up Their Market.

View OTCQX companies that Lit up the Market in December and January to celebrate joining our best marketplace.

Communities First Financial Corporation (OTCQX: CFST)
Crexendo, Inc. (OTCQX: CXDO)
Community Bank of Santa Maria (OTCQX: CYSM)
ICTV Brands Inc. (OTCQX: ICTV)
Santa Cruz County Bank (OTCQX: SCZC)
SBT Bancorp, Inc. (OTCQX: SBTB)
Sturgis Bancorp (OTCQX: STBI)
Woodlands Financial Services (OTCQX: WDFN)
2014 Trade Summary
Marketplace Designations # of Securities* Annual Dollar Volume % of Total Dollar Volume
OTCQX® 383 $36,118,475,038 15.1%
OTCQB® 2,252 $62,650,266,018 26.3%
OTC Pink® 7,276 $139,656,242,191 58.6%
Totals 9,911 $238,424,983,247 100.0%
*Data as of December 31, 2014
Monthly Trade Summary

December 2014

Marketplace Designations # of Securities* Monthly Dollar Volume Monthly Dollar Volume
per Security
OTCQX® 383 $3,940,802,961 $5,447,726
OTCQB® 2,252 $2,314,103,025 $1,093,437
OTC Pink® 7,276 $12,432,013,371 $1,253,711
Totals 9,911 $18,686,919,357 $1,378,291
*Data as of December 31, 2014
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Events, Webinars & Sponsorships
News
STANY's 79th Annual Conference and Dinner - New York, NY (April 16, 2015)

26th Annual ROTH Conference - Dana Point, CA (March 9-12, 2015)

IR Magazine Awards: Canada 2015 - Toronto, Canada (February 4, 2015)

Bank Director: Acquired or Be Acquired Conference - Scottsdale, AZ (January 25-27, 2015)

Trans-Atlantic Information Flow: A Forum with OTC Markets & PR Newswire - Paris, France (January 21, 2015)

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

OTC Markets names Robert Power to fill new role - IR Magazine online (Jan. 23, 2015)

Marketplace for community banks sets sights on private banks, index in '15 - SNL Financial (Jan. 8, 2015)

Simsbury Bank parent shifts to OTCQX - Hartford Business Journal (Jan. 7, 2015)

OTC Markets Group Launches Three New OTCQX Indexes - Traders Magazine online (Dec. 31, 2014)

OTC Markets Group Congratulates Trillium Therapeutics on NASDAQ Listing - press release (Dec. 22, 2014)

Fresno First Bank parent upgrades OTC platform - Fresno Business Journal (Dec. 22, 2014)

OTC Markets Group Approves Wedbush Securities as Corporate Broker for Banks on OTCQX® Marketplace - press release (Dec. 17, 2014)
FACT OF THE MONTH
Companies were less likely to be involved in a securities class action filed in 2014 than in any year since at least 2000. Maximum Dollar Loss (MDL), a measure of the difference between the highest market capitalization reached during the class period and the market capitalization on the trading day following the close of the class period, was also at its lowest since 1997.

  • At the beginning of 2014, 2.2% of S&P 500 companies were defendants in a securities class action vs. the historical average of 5.7%
  • In 2014, total Maximum Dollar Loss (MDL) of filing was $215 billion, 66% below the historical annual average of $630 billion

2014 Year in Review: Securities Class Action Filings, Cornerstone Research
REGULATION & COMPLIANCE
Comments Requested on Proposal to Publish OTC Equity Volume Executed Outside an ATS
  FINRA is requesting comment on a proposal to publish the OTC equity volumes executed outside an Alternative Trading System (ATS), including non-ATS electronic trading systems and internalized trades. Additional information may be found here. The comment period has been extended to February 20, 2015.

SEC Adopts New Regulation SCI
  On November 19, 2014, the SEC approved Regulation Systems Compliance and Integrity (“Reg SCI”). The new Reg SCI was published in the Federal Register on December 5, 2014. The rule will be effective on February 3, 2015 with a compliance date of November 3, 2015. The press release can be found here. The final rule and form can be found here.

Comment Period Extended for Proposed Change to OATS Rules
  FINRA has extended the comment period to February 20, 2015 on proposed amendments to the OATS rules that would require member firms to report additional information to OATS. The proposed amendment to the OATS Rules would require member firms to identify non-member broker-dealers when reporting orders received from such entities. FINRA Regulatory Notice 14-51 can be found here.

Proposed Rule Change for Quotation Requirements of Unlisted Equity Securities Extended
  SEC extends until March 12, 2015 an Order Instituting Proceeding to Determine Whether to Approve or Disapprove a Proposed Rule Change relating to Quotation Requirements for Unlisted Equity Securities and Deletion of the Rules related to the OTC Bulletin Board Service. Additional information may be found here. Comment Letters may be found here.

FINRA Publishes Updated Trade Reporting FAQ
  FINRA has recently published an updated Trade Reporting Frequency Asked Questions on reporting of OTC transactions in equity securities to a FINRA Facility (a Trade Reporting Facility (TRF), the Alternative Display Facility (ADF) or the OTC Reporting Facility (ORF). Further information may be found here.
OTCQX GRADUATIONS
Trillium Therapeutics graduated from OTCQX to a NASDAQ listing. Best of luck to the company on this next step!
OTCQX AND OTCQB NEW ADDITIONS
OTCQB
10 New Companies Qualified for Our Best Marketplace in December

Anavex Life Sciences Corp. (OTCQX: AVXL)
California Bank of Commerce (CA) (OTCQX: CABC)
Communities First Financial Corp. (OTCQX: CFST)
DelMar Pharmaceuticals, Inc. (OTCQX: DMPI)
IG Group Holdings Plc. (OTCQX: IGGHY)

Point.360 (OTCQX: PTSX)
Scorpio Mining Corp. (OTCQX: SMNPF)
Sturgis Bancorp, Inc. (OTCQX: STBI)
Valley Republic Bank Bakersfield CA (OTCQX: VLLX)
Woodlands Financial Services Co. (OTCQX: WDFN)
A complete list of OTCQX companies is available on www.otcmarkets.com.


111 companies were verified to trade on OTCQB in December.

View all companies verified for OTCQB.
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To learn more about OTC Market Group visit us at www.otcmarkets.com // +1.212.896.4420 // issuers@otcmarkets.com
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