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OTC Markets Group
OTC Markets Group

Financial services / Financial market data and services

At a Glance | Core Facts | Company Due Diligence: | Industry Due Diligence: | Competitors | Stock Swings | News | Income | Balance | Cash Flow | Growth | Enterprise | Ratios | Metrics | Dividends | Risks | SWOT | Porter's Five Forces | PEST | Score Positive | Clusters | Reports | Web
Overview
The OTC Markets Group is a financial information and technology company that operates the OTCQX, OTCQB, and Pink financial markets, which are the three largest trading platforms in the United States for over-the-counter (OTC) stocks. The company offers investors and brokers access to transparent pricing, real-time market data, and efficient trading in OTC securities.
Founded in 1913, the OTC Markets Group has a long history as a trusted and reliable marketplace for OTC securities. It is headquartered in New York City and has additional offices in Chicago, Washington D.C., and London.
The OTC Markets Group is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is also a member of the World Federation of Exchanges.
The company’s mission is to provide transparent and efficient markets for investors, broker-dealers, and issuers of OTC securities. They aim to provide a level playing field for all market participants by providing equal access to market data and pricing information.
The OTC Markets Group also offers a suite of products and services for issuers to improve their visibility and liquidity in the OTC marketplace. This includes OTC Link ATS, a regulated alternative trading system for OTC securities, and the OTC Compliance Data Service, which provides compliance information for OTC securities.
Overall, the OTC Markets Group is dedicated to providing efficient, transparent, and fair markets for OTC securities, allowing investors to trade with confidence and issuers to access capital easily.
What is special about the company?
One of the biggest differentiators for the OTC Markets Group company is its focus on the over-the-counter (OTC) market, which consists of securities that are not listed on a major stock exchange. This includes stocks from smaller companies, foreign securities, and other types of investments.
OTC Markets Group is known for providing transparency and accessibility to the OTC market through its electronic trading platform. This platform offers real-time market data, company information, and trading data for over 11,000 securities. This makes it easier for investors to research and trade OTC securities.
Additionally, the company offers a range of services to help OTC companies navigate the complexities of the OTC market, such as compliance and marketing services. This specialized focus on the OTC market sets OTC Markets Group apart from other financial services companies and allows it to cater to the unique needs of OTC companies and investors.
What the company's business model?
The OTC Markets Group is a financial services company that operates an electronic marketplace for trading over-the-counter (OTC) securities. Their business model is based on providing a transparent, efficient, and regulated platform for buying and selling OTC securities, as well as providing market data and corporate services to companies that are listed on their marketplace.
The company generates revenue through a variety of sources, including:
1. Trading fees: OTC Markets Group charges a fee for every transaction made on their marketplace, both from the buyer and the seller.
2. Data products: The company offers market data and analytics products that provide valuable insights and information to investors and traders. These products are available through subscription and generate a recurring revenue stream.
3. Corporate services: OTC Markets Group provides various corporate services, such as compliance and disclosure solutions, to help companies listed on their marketplace meet regulatory requirements. They charge a fee for these services.
4. Advertising and promotion: The company also generates revenue through advertising and promotional services for companies listed on their marketplace.
Overall, the OTC Markets Group’s business model is centered around facilitating the trading of OTC securities and providing various services to companies and investors in the OTC market.
Interesting facts about the company
1. OTC Markets Group was founded in 1913 as the National Quotation Bureau (NQB), which provided daily price information for over-the-counter (OTC) securities. It was the first organization to provide price information for OTC securities.
2. The company was initially based in New York City and operated out of a small office with just a few employees. Today, it is headquartered in New York City and has over 150 employees.
3. In 1997, the NQB was renamed the Pink Sheets LLC, and in 2008 it became known as the OTC Markets Group.
4. OTC Markets Group operates three different tiers of securities markets: OTCQX, OTCQB, and Pink. These tiers are based on the level of financial and disclosure requirements that a company must meet to be listed on the market.
5. The company’s market data and trading services are used by over 11,000 securities firms and over 600 corporate issuers.
6. OTC Markets Group is considered a leader in the OTC market space, with over $137 billion in securities traded on its marketplaces in 2018.
7. The company’s flagship market, OTCQX, has strict listing standards that require companies to meet high financial and disclosure requirements. Only top-performing companies are listed on OTCQX.
8. OTC Markets Group has a unique market structure that allows investors to trade OTC securities without using a traditional stock exchange. This market structure provides increased transparency and access to trading for investors.
9. The company’s OTC Link platform is used by market makers, broker-dealers, and other market participants to facilitate trading and provide real-time quotes and price information for OTC securities.
10. OTC Markets Group also offers a suite of compliance and regulatory services to help companies navigate the complex world of public reporting and stay compliant with SEC regulations.
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