OTC Markets Group Inc - OTCM stock
Overview[edit]
OTC Markets Group (OTC: OTCM), An American financial market formerly known as Pink Sheets offers price and liquidity data for nearly 10,000 over-the-counter (OTC) securities. The organization's main office is in New York City. To help investors understand opportunities and risks, OTC-traded securities are divided into three markets: OTCQX, OTCQB, and Pink.[1]
In a decentralized market known as an over-the-counter (OTC) market, participants can trade stocks, commodities, currencies, or other financial instruments directly between two parties without the use of a central exchange or broker. In over-the-counter markets, trading is done electronically rather than in a physical location.[1]
History[edit]
The company was founded in 1913 as the National Quotation Bureau (NQB). For decades, the NQB reported stock and bond quotations, publishing them in the paper-based Pink and Yellow Sheets, respectively. The publications were named after the type of paper used to print them. CCH owned NQB from 1963 to 1993. The NQB launched the real-time Electronic Quotation Service in September 1999. The National Quotation Bureau was renamed Pink Sheets LLC in 2000, and then Pink OTC Markets in 2008. In 2010, the company adopted its current name, OTC Markets Group.[2] On the OTC Markets platform, 89 broker-dealers currently price and trade a wide range of securities.[3]
The National Quotation Bureau, which was founded in 1904, came before the company. Before being known as the OTC Markets Group Inc., the National Quotation Bureau was known as Pink Sheets LLC in 2000 and Pink OTC Markets Inc. in 2008. The name was changed to OTC Markets Group in 2011.[4]
Operations[edit]
OTC Markets operate a regulated electronic market in which SEC-registered, FINRA-member broker-dealer's trade OTC securities efficiently. Competing broker-dealers (also known as "market makers") display the price at which they are willing to buy (the "bid") and sell (the "ask") security. Their real-time data enables brokers to execute client trades at the best possible price with a variety of counterparties.[5]
Citadel Securities, GTS, Jane Street, StoneX, Susquehanna/G1X, and Virtu are among the industry's leading market makers that comprise the diverse community of 90+ regulated broker-dealers that provide investors with continuous liquidity and execution services. Market makers compete for business by offering competitive pricing, execution quality, and the ability to fill large or specialized orders.[5]
Millions of online, retail, and institutional broker-dealers use market makers to send investor orders for electronic execution at the best price. A diverse group of regulated market makers with a wide range of industry knowledge can trade anything from smaller, more innovative, and entrepreneurial businesses to investor-focused community banks and multinational corporations.[5]
Investors can easily trade through the broker of their choice using OTC's registered trading platforms, OTC Link® ATS and OTC Link ECN. These platforms also give businesses the ability to raise the standard of information that is made available to investors.[6] The markets have improved information accessibility for investors and the level of transparency over the past 20 years. These improvements have aided in the process of capital formation and serve as further evidence that their markets were created with companies that uphold moral principles in mind.[5]
OTC's three tiers of markets—OTCQX, OTCQB, and Pink—keep developing to meet the needs of publicly traded companies. Technology advancements allow markets to diversify and trading to become more decentralized. Markets become more efficient and connect all participants fairly when there is access to digital information. Many disclosure standards have been acknowledged, enabling businesses to offer the best disclosure most efficiently.[5]
Products and Services[edit]
Services[edit]
The OTC Markets suite of services is made to assist businesses in better connecting with the investment community.[5]
OTC Disclosure & News Service[edit]
To increase information availability and satisfy regulatory requirements, distribute your company's news and information to a large audience of American investors, market data distributors, investment databases, media outlets, and broker-dealers. All OTCQX and OTCQB companies can access OTC Disclosure & News Service, and Pink companies can also subscribe to it.
Service for Real-Time Level 2 Quote Display[edit]
Provide knowledge about the liquidity that is available, enabling both professional and amateur investors to make wise investment choices. Real-Time Level 2 Quotes, which show all broker-dealer bid/ask prices and sizes, can be integrated into your corporate website and are shown on a company's quote page on www.otcmarkets.com. All OTCQX, OTCQB, and subscribed Pink companies have access to Real-Time Level 2 Quote Display Service.
Online Capital Raising Solutions[edit]
To provide businesses with a technology platform that offers an effective, economical way to raise capital online and gain visibility for the offering through their OTC Markets profile page, OTC Markets Group and North Capital Investment Technology have formed a strategic alliance.
Conferences for Virtual Investors[edit]
Companies can effectively tell their story to the US investment community through Virtual Investor Conferences without leaving their offices and with the least amount of time commitment. Tens of thousands of individual and institutional investors, as well as wealth management experts, are in attendance. A 20–25 minute presentation by the featured companies is followed by a 10-minute Question and Answer.
Issuer Direct Solutions[edit]
OTCQX and OTCQB Companies have access to news, compliance, and communications solutions via the OTCIQ portal thanks to OTC's strategic partnership with Issuer Direct. Professionals looking for an effective and economical model will find this to be designed to maximize efficiency and provide convenient, easily accessible disclosure and communications solutions.
Blue Sky[edit]
Broker-dealers must ensure that security complies with the Blue Sky laws of the state where the investor resides before recommending, soliciting, or even talking about it with investors in any of the 50 US states or 4 US territories. To assist investors in making more knowledgeable investment decisions, blue sky laws, which are determined specifically by each state, generally require that a company disclose accurate and current information when offering or marketing securities.
OCTIQ[edit]
OTCIQ Basic is the best option for businesses that disclose their information to investors primarily through the SEC or another securities regulator.
Key Products[edit]
In addition to stocks and bonds, investments that trade OTC frequently consist of:
Derivatives[edit]
Private agreements between two parties known as derivatives are frequently arranged by brokers. These can include forwards, futures, options, or other contracts whose value is determined by the value of an underlying asset, such as a stock.[6]
American Depositary Receipts[edit]
ADRs, also known as ADSs or bank certificates, are American depositary receipts that represent a specific quantity of shares of a foreign stock.[6]
Foreign currencies[edit]
The Forex is an over-the-counter currency exchange where daily transactions totaling more than $6.6 trillion are made between different currencies.[6]
Cryptocurrencies, such as bitcoin and Ethereum.[6]
Technology[edit]
According to G2 Stack, OTC Markets Group employs 51 technology products and services, including HTML5, jQuery, and Google Analytics. And, is actively using 35 technologies on its website. Apple Mobile Web Clips Icon, WordPress, and Font Awesome are among them, according to to build with.[7]
According to IPqwery, OTC Markets Group has one registered patent in the "Computing; Calculating" category. The most popular class of the 29 trademarks registered by OTC Markets Group is "Insurance; financial affairs."[7]
- ↑ 1.0 1.1 Investopedia. Over-the-Counter-Markets: What They Are and How They Work. March 23, 2022.
- ↑ Investopedia. National Quotation Bureau (NQB). July 27, 2022.
- ↑ OTC Markets. Broker-Dealer Directory. Accessed on 12/12/2022.
- ↑ Investopedia. OTC Markets Group Inc. October 5, 2022.
- ↑ 5.0 5.1 5.2 5.3 5.4 5.5 OTC Markets. Exploring The Fundamentals: How The OTC Markets Work. June 21, 2021.
- ↑ 6.0 6.1 6.2 6.3 Business Insider. What is OTC? A beginner's guide to over-the-counter markets. August 26, 2022.
- ↑ 7.0 7.1 Crunchbase. OTC Markets Group. Accessed on 12/12/2022.
OTC Symbol: OTCM | OTC Tier: OTCQX U.S. Premier
