OTC Markets Group Inc.
The OTC Markets Group is the owner and operator of the most substantial U.S. inter-dealer electronic quotation and trading system for over-the-counter (OTC) securities. Prior to being called the OTC Markets Group Inc., the National Quotation Bureau renamed itself Pink Sheets LLC in 2000 and then Pink OTC Markets Inc. in 2008. 3. The Corporate Services division helps companies go public and gain greater visibility through listing in one of OTC Markets Group's three OTC tiers. The company was preceded by the National Quotation Bureau which was founded in 1904. The most visible aspect of the OTC Markets Group's stewardship is the breakdown of the OTC market into three tiers, based on the quality and quantity of the listed companies’ information and disclosures. The OTC Markets Group is the owner and operator of the most substantial U.S. inter-dealer electronic quotation and trading system for over-the-counter (OTC) securities.
What Is OTC Markets Group Inc.?
The OTC Markets Group is the owner and operator of the most substantial U.S. inter-dealer electronic quotation and trading system for over-the-counter (OTC) securities. It provides marketplaces for trading more than 11,000 OTC securities.
Understanding OTC Markets Group Inc.
OTC Markets Group Inc. provides services in three core areas that are essential for better-informed and more efficient financial markets. The fields are Trading Services, Market Data, and Corporate Services.
- The Trading Services division, OTC Markets Group connects broker-dealers together which provides the liquidity and infrastructure for executing trades on the OTC market.
- The Market Data division provides data and quote services for more than 11,000 OTC securities.
- The Corporate Services division helps companies go public and gain greater visibility through listing in one of OTC Markets Group's three OTC tiers.
The company was preceded by the National Quotation Bureau which was founded in 1904. Prior to being called the OTC Markets Group Inc., the National Quotation Bureau renamed itself Pink Sheets LLC in 2000 and then Pink OTC Markets Inc. in 2008. The change to the OTC Markets Group name came in 2011.
The handling of most OTC securities trading in the U.S. is on the company’s OTC Link platform, an alternative trading system registered with the Securities and Exchange Commission (SEC) as a broker-dealer. OTC Markets Group has its headquarters in New York City and is publicly traded on the OTCQX marketplace under the symbol OTCM.
With more than 11,000 securities listed by the OTC Markets Group as of April 2021, daily trading volume fluctuates. Dollar trade volume typically exceeds $1 billion per day, share volume will often reach five billion or higher, and the number of trades will often be north of 150,000. These stats are for all three tiers combined.
The OTC Pink is the largest tier in terms of the number of companies listed within it. It also typically accounts for about 70% of the daily trading volume mentioned above.
OTC Markets Group Tier Structure
The most visible aspect of the OTC Markets Group's stewardship is the breakdown of the OTC market into three tiers, based on the quality and quantity of the listed companies’ information and disclosures. This tiered structure provides different levels of transparency, so investors know what type of information is available for each company they wish to trade.
Related terms:
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Broker-Dealer
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Default
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Federal Deposit Insurance Corporation (FDIC)
The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency that provides insurance to U.S. banks and thrifts. read more
Financial Industry Regulatory Authority (FINRA)
The Financial Industry Regulatory Authority (FINRA) is a nongovernmental organization that writes and enforces rules for brokers and broker-dealers. read more
National Quotation Bureau (NQB)
The National Quotation Bureau (NQB), now known as the OTC Markets Group (OTCM), was a publisher of price data for over-the-counter (OTC) securities. read more
OTC Pink
OTC Pink is the lowest tier of the three marketplaces for trading over-the-counter stocks provided and operated by the OTC Markets Group. read more
Over-The-Counter (OTC)
Over-The-Counter (OTC) trades refer to securities transacted via a dealer network as opposed to on a centralized exchange such as the New York Stock Exchange (NYSE). read more
Over-The-Counter Bulletin Board (OTCBB)
The OTCBB is a regulated quotation service for OTC securities provided by the Financial Industry Regulatory Authority (FINRA) to its members. read more