EQS-News

The OTCQX And OTCQB Markets Experience A Shift Over Pink Tiers Following Improved Regulation Standards By The SEC - Seite 2

A massive 23.7% approximate average value gap between the upgrades to premium tiers (OTCQX and OTCQB) and downgrades from Pink Current to Pink Limited

An almost threefold average decrease in relative trading volumes of the issuers that downgraded from Pink Current to Pink Limited

Spreads widened by 6% for downgrades from Pink Current to Pink Limited

Spreads tightened by 3% for upgrades from the Pink to OTCQX and OTCQB tiers.

The findings above summarize two broader themes: Upgrading from Pink tiers to Premium tiers not only resulted in valuation benefits to the securities in question but also to liquidity enhancements. Trading volume, the bid-ask spread and the number of market makers were all key areas of improvement.

Material Differences Between Premium OTCQX and OTCQB Markets And Pink Tiers

The report concludes that “the enactment of the amendment to SEC Rule 15c2-11 allows the OTC Markets to better fulfill their role as market operators entrusted with the delivery of the best quality information disclosures to the U.S. investment community. The paper reports strong evidence that investors and brokers have adapted positively and the price formation process in these markets has improved as reflected in value increases and enhanced liquidity. The value and liquidity gap between the OTCQX & OTCQB and the Pink tiers has increased. Pink issuers should upgrade to a premium tier.”

The new regulation recognizes the progress that OTC Markets Group has made in building transparency for the investment community over the last 15 years. Market tiers, first introduced in 2007, have set standards for quality of disclosure and helped make information easily accessible for investors.

OTC Markets Group continues to be the home for many of the world’s top securities, including adidas AG (OTCQX: ADDYY), Grayscale Bitcoin Trust (OTCQX: GBTC), Heineken N.V. (OTCQX: HEINY), Air Canada (OTCQX: ACDVF) and BNP Paribas S.A. (OTCQX: BNPQY) to name a few.

Click here for the full report.

OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX Best Market, OTCQB Venture Market and Pink Open Market. Our OTC Link Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets. OTC Link ATS, OTC Link ECN and OTC Link NQB are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC.