The OTC Markets QB marketplace takes away and gives back.
As part of planned changes to the OTCQB marketplace, effective today, OTC Markets removed 239 securities from its OTCQB marketplace that have traded below a one cent for the past 30 calendar days or are undergoing bankruptcy or reorganization.
The bankruptcy/reorganization test is a new requirement for trading on OTCQB that was added in the past couple weeks, according to OTC Markets.
OTCQB has replaced the OTC Bulletin Board as the marketplace for broker-dealers to electronically trade in SEC and Bank reporting companies that have not qualified for OTC’s QX. There are now over 3,000 securities traded on OTCQB with an average of 10 market makers per security.
As a result, the removed companies are downgraded to the OTC Pink ?open? marketplace and are labeled OTC Pink on the exchanges website and on other major financial databases and websites.
OTC Pink includes many distressed, delinquent and dark companies and requires the maximum in terms of investor research and caution. Many brokerage firms have significant compliance checks to trade OTC Pink securities.
But while some securities are moving, the exchange operator has opened up its listings to include international companies that are listed on a qualified foreign stock exchange and can meet all the requirements may apply for trading on OTCQB. The inclusion of these foreign stocks has for the first time opened OTCQB to venture-stage or start-up international companies.
OTC markets said in a release that the inclusion of the international venture-type stocks is rooted in its goal is to make QB a “real venture stage marketplace” in the U.S.. There are similar “entry-level” exchanges globally, such as TSX Venture in Canada and AIM market in London.
“These international markets serve a group of early and developing companies that are not yet ready to qualify for the higher financial standards of a top tier marketplace, yet still benefit from a well regulated market with information and verification standards,” OTC Market said in a release to members. “Our top marketplace, OTCQX, will still be the best choice for companies that are not penny stocks, can meet high financial standards, and undergo a qualitative review.”
