OTC Markets Newsletter - July 2011
July 2011

The OTC Market Sees Increased Interest in Foreign Securities

This year, there has been a significant acceleration of foreign stocks to the OTC market. Since January 2011, 250 international securities have joined the more than 10,000 securities that are quoted on our OTC Link™ platform, an uptick of 12%.

In an increasingly globalized world where U.S. investors are continuing to show an increased interest and appetite for international investment opportunities, OTC Markets Group's OTCQX®, OTCQB® and OTC Pink™ tiers offer international companies a way to provide the large pool of U.S. investors with easy access to their securities.

By recognizing an international company’s primary market disclosure in English, OTCQX has established a highly visible, efficient and cost-effective platform for some of the world’s most interesting companies to create the information rich marketplace that is essential to informing and attracting an educated pool of U.S. investors.

Our website, www.otcmarkets.com, provides companies with the tools to post their financial reports, news, and other information U.S. investors need to make intelligent investment decisions. OTC Markets Group has built the leading electronic platform for OTC companies to provide the quality, timely, reliable disclosure and market information needed to enhance the price discovery and information equilibrium in the trading of their securities.

We are committed to innovating our marketplace for all companies that trade on our platform. Let us know how we can build a better marketplace for you.

This month's community member - Markus Zeise, BASFGet to Know Your Community:
Markus Zeise, Director Investor Relations, BASF

This month, we sat down with Markus Zeise, Director of Investor Relations at BASF (OTCQX: BASFY).

About BASF
BASF is the world's leading chemical company. Its portfolio ranges from chemicals, plastics, performance products and agricultural products to oil and gas. Further information on BASF is available here: www.basf.com.

Q: BASF’s ADRs have been trading on OTCQX for three years.  Why did BASF make the decision to move from NYSE to OTCQX?
A: With de-listing from the NYSE, BASF was able to streamline its reporting requirements based on IFRS, which has reduced complexity and led to significant cost savings while maintaining the high level of transparency expected by the international financial markets. The listing in 2000 helped to put BASF on the map in the U.S. as a trusted investment. Our local presence in the U.S. continues to be stable (CFO and one IRO based at our North American headquarters in NJ), and BASF‘s senior management remains fully committed to an intensive dialogue with U.S. and Canadian investors and analysts.
To read the entire interview, click here: www.otcmarkets.com/content/doc/OTCNewsletter/CommunityJuly2011.pdf.

OTC Market Trade Summary - June 2011

OTC Market Tier # Securities* Monthly $ Volume Avg. Monthly $ Volume
per Security
Market Capitalization
(in Millions)*
OTCQX®: The Quality-Controlled Marketplace 236 $2,072,884,008 $8,783,407 $1,169,772
OTCQB®: The U.S. Reporting Marketplace 3,739 $3,665,833,044 $980,431 $1,136,036
OTC Pink:The Speculative Trading Marketplace - Current 1,988 $8,441,884,644 $4,246,421 $11,204,995
OTC Pink Limited Information 818 $549,627,623 $671,916 $41,224
OTC Pink No Information 3,298 $175,231,068 $53,133 $163,104
Totals 10,079 $14,905,460,387 $1,478,863 $13,715,134
* Selected data as of June 30, 2011.

OTC Market Regulation

Market Orders in OTC Equity Securities Subject to Manning Rule - Effective September 12, 2011
FINRA Rule 5320 (“Prohibition Against Trading Ahead of Customer Order”) will be effective on September 12, 2011. FINRA Rule 5320 generally provides that a broker-dealer firm that accepts and holds an order in an OTC equity security from its own customer or a customer of another broker-dealer without immediately executing the order is prohibited from trading that security on the same side of the market for its own account at a price that would satisfy the customer order. Implementation of this rule will make market orders in OTC equity securities subject to the Manning Rule. Limit Orders in OTC equity securities have been subject to the Manning Rule since November 11, 2008.

Read the full Regulatory Notice here: www.finra.org/Industry/Regulation/Notices/2011/P123670

OTC News and 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.

Southern California Investment Conference (August 29, 2011)

STANY Golf Outing (July 25, 2011)

Minnesota Security Dealers Association Conference (July 14-15, 2011)

IR Magazine Brazil Awards 2011 (July 11, 2011)

IR Magazine Europe Awards 2011 (June 30, 2011)

Fact of the Month

OTCQX surpassed OTCQB in June with a market capitalization of $1.17 Trillion, accounting for 8.6% of the combined market cap of the entire OTC market.

OTCQX - New this Month - New this Month

Twenty-two companies joined OTCQX in June, bringing the total number of OTCQX companies to 236 as of June 30, 2011.

 

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

OTC Market Tiers

OTCQX
The top tier of the OTC market - for companies that meet the highest financial standards and undergo a qualitative review.

OTCQB
The middle tier of the OTC market - for companies that report to the SEC or a U.S. banking or insurance regulator.

OTC Pink
The speculative trading marketplace where broker-dealers get the best prices for investors.

For questions, please contact OTC Markets Group
www.otcmarkets.com • 212-430-3690 • info@otcmarkets.com
Follow us on Twitter: @OTCMarkets