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OTC Markets Newsletter - July 2012
July 2012


Improving The Availability of OTC Company Financial Data

At OTC Markets Group (OTCQX: OTCM), our mission is to create smarter financial marketplaces. One core feature of efficient financial marketplaces is the availability and quality of financial disclosure so investors can easily analyze company information. To improve the availability of company information for OTCQX, OTCQB and OTC Pink companies, we have partnered with EDGAR Online (NASDAQ: EDGR) to transform historical financial statements into an XBRL database.

This is a new feature for companies that use our OTCQX marketplace or the OTC Disclosure & News Service to distribute their financial disclosure in PDF format. Wider availability of historical financial information will empower investors with easier access, improved analysis and better decision making.

Historical financial report data for OTCQX-traded companies and OTC Disclosure & News Service subscribers is now accessible to investors on www.otcmarkets.com and Yahoo! Finance and through professional databases for institutional investors. Investors are now able to more easily analyze company financial data for hundreds of OTCQX, OTCQB, and OTC Pink-traded companies that provide disclosure using the International Reporting Standard, report to U.S. banking regulators, or follow the Alternative Reporting Standard.

For more information about this groundbreaking new feature, we invite you to read the following Forbes and Washington Post articles.

Help investors better analyze your company information and start building a smarter marketplace. Contact us to learn more >

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

Michael Modeski, President, OTC Link LLC

This month, we sat down with Michael Modeski, President of OTC Link® LLC, a wholly-owned subsidiary of OTC Markets Group Inc. (OTCQX: OTCM).

Q: Can you explain the reasoning behind OTC Link registering as an Alternative Trading System (ATS)?
A: As we have improved the transparency and connectivity in the OTC markets, volume and breadth of the marketplace have grown extensively. Our trading technology is now relied upon by broker-dealers for well over 95% of all priced quotes in OTC equity securities. Based on these developments and our significant position in U.S. securities markets, it was time to register our trading system as an ATS.

After working with FINRA and the SEC to ensure the continued smooth operation for our subscribers, OTC Link became a broker-dealer member of FINRA on March 5, 2012, and commenced operations as an SEC-regulated ATS on June 1, 2012.

Going forward, the SEC and FINRA will have direct regulatory oversight of the operations of OTC Link ATS.

Q: What is the business impact of OTC Link becoming an ATS?
A: In preparing OTC Link to become a regulated entity, we had the opportunity to review our policies and procedures, and update our best practices. We took our process, which had been successfully serving regulated broker-dealers, and refined it to better serve them and meet our obligations to regulators going forward.

We worked with the SEC and FINRA to ensure that as a regulated ATS the functionality of our system would not change -- we continue to provide fully attributable quote and trade messaging services. Broker-dealer subscribers to OTC Link ATS use the same trading system that has helped them fuel the growth of the OTC market.

Click here to read the entire interview.

OTC Market Regulation & Compliance

DAD/PAL Eligibility Amendments

OTC Markets Group amended the DAD/PAL eligibility standards based on feedback from our DAD/PAL advisory community and OTCQX companies. These changes should expand the pool of investment banks that can provide professional advisory services to OTCQX companies.

The new standards, available here: otcqx.com/qx/dad-pal/forms, became effective on June 11, 2012.

Market Data Updates

Yahoo! has removed the legacy extensions previously amended to the trading symbols of OTC securities. Investors will no longer see ‘.pk’ or ‘.ob’ after the trading symbols of any OTC security. Take a look >

Quote Access Payment (QAP®) information, featuring the access fee or rebate published by an OTC market participant related to the quote of a particular security, is now available to users of the Bloomberg Professional service. Read More >

AHT Insurance                         Ellenoff                       Scottsdale

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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.

STANY Golf Outing (July 30, 2012)

IR Awards Brazil (July 2, 2012)

IR Awards Europe (June 26, 2012)

Marcum Microcap Conference (June 20, 2012)

Reverse Merger Conference (June 5, 2012)

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

OTC News

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

OTC Markets Group Data and OTC Equity Trading Now Available on Liquidnet (June 21, 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)

'Transforming the OTC Market'

 

We recently completed a short film on the Wall Street Journal Online examining how OTC trading has transformed into an efficient, cost-effective, and information-rich marketplace. Please take a moment to review the film here: OTC Markets Group: 'Transforming the OTC Market'

WSJ.com Video

OTC Market Monthly Trade Summary - June 2012

OTC Market Tier # Securities* Monthly Dollar Volume Avg. Monthly Dollar Volume
per Security
Market Capitalization
(in Millions)*
OTCQX® 383 $1,459,409,391 $3,810,468 $1,086,487
OTCQB® 3,522 $2,435,412,610 $691,486 $201,535
OTC Pink® Current Information 2,280 $5,797,108,840 $2,542,592 $8,865,644
OTC Pink Limited Information 742 $90,143,055 $121,487 $8,484
OTC Pink No Information 2,931 $432,876,749 $147,689 $27,634
Totals 9,858 $10,214,950,645   $10,189,784
* Selected data as of June 29, 2012.

OTC Market Trade Summary - 6 Months Ended June 2012

OTC Market Tier # Securities* Dollar Volume Avg. Dollar Volume
per Security
Market Capitalization
(in Millions)*
OTCQX® 383 $12,363,700,630 $32,281,203 $1,086,487
OTCQB® 3,522 $18,855,606,017 $5,353,664 $201,535
OTC Pink® Current Information 2,280 $42,152,594,961 $18,487,980 $8,865,644
OTC Pink Limited Information 742 $3,043,772,510 $4,102,119 $8,484
OTC Pink No Information 2,931 $1,679,522,136 $573,020 $27,634
Totals 9,858 $78,095,196,254   $10,189,784
* Selected data as of June 29, 2012.

OTCQX - New this Month - New Additions

Twenty-six companies joined OTCQX in the months of May and June.

 

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

OTC Market Tiers

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.