New US Regulatory Developments Impacting Financial Marketplaces
New York, June 6, 2013 AEST (ABN Newswire) - On May 16, the SEC updated its Compliance and Disclosure Interpretations stating that the OTCQX and OTCQB marketplaces are now considered "established public markets" for the purposes of establishing a public market price when registering securities for resale in equity line financings on SEC Forms S-1 or S-3.
As a result, companies may use their OTCQX or OTCQB marketplace trading to complete an equity line financing registration statement, and no longer need to have a quote on FINRA's OTC Bulletin Board to be considered having an established public market.
OTC Markets Group Requests SEC to Expand Form 13(f) Reporting Requirements to Include all OTC Equity Securities.
OTC Markets Group has submitted a comment letter to the SEC requesting that the Commission expand the scope of Form 13(f) reporting requirements to include all equity securities traded on the OTCQX, OTCQB and OTC Pink marketplaces.
Under Section 13(f) of the Securities Exchange Act, institutional investment managers with over $100 million under management are required to file a quarterly report of their equity holdings in all exchange-listed securities, but there is no such reporting requirement for securities trading off a national securities exchange. As a result, there are over 9,400 companies that are unable to accurately determine which institutions hold their securities, with no available recourse. That includes over 2,500 foreign companies whose ADRs and foreign ordinary shares trade exclusively on the OTCQX, OTCQB and OTC Pink marketplaces, approximately 700 community banks, 3,800 SEC reporting companies and thousands of smaller U.S. companies.
About OTC Markets Group Inc.
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 public markets: OTCQX(R) Best Market, OTCQB(R) Venture Market, OTCID(TM) Basic Market and Pink Limited(TM) Market. Our OTC Link(R) 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, OTC Link NQB, and MOON ATS(TM) are each SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC.
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