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 11 500 otc securities 1understanding 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 through 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 11 500 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 1the 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 5the 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 6 otc markets group has its headquarters in new york city and is publicly traded on the otcqx marketplace under the symbol otcm 78as of march 7 2022 the dollar volume is 219 million and the share volume is 1 4 billion these stats are for all three tiers combined 9 the otc pink is the largest tier in terms of the number of companies listed within it 4otc markets group inc tier structurethe 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 1otcqx is the top tier of the three marketplaces for the otc trading of stocks stocks that trade on this forum must meet more stringent qualification criteria compared to the other levels also called the otcqx best market it includes a large number of blue chip stocks from europe canada brazil and russia 10 these large foreign stocks are frequently global household names penny stocks shell companies and companies in bankruptcy cannot qualify for a listing on the otcqx 3the middle tier is called otcqb also known as the venture market which consists of early stage and developing u s and international companies that are not yet able to qualify for the otcqx the company must be current in its reporting undergo an annual verification management certification meet a 0 01 bid test and must not be in bankruptcy to meet eligibility standards 3the otc markets group has created many financial indexes such as the otcqx banks otcqx dividend and otcqx canada 11companies listed here report to a u s regulator such as the sec or federal deposit insurance corporation fdic the otcqb replaced the financial industry regulatory authority finra operated otc bulletin board otcbb as the main market for trading otc securities that report to a u s regulator 12 because it has no minimum financial standards the otcqb includes shell companies penny stocks and small foreign issuers 3otc pink or pink sheets is the lowest level and most speculative tier of the three marketplaces for the trading of over the counter stocks this marketplace offers trading in a wide range of equities and includes companies in default or financial distress 2because it has fewer disclosure requirements the categorization of otc pink companies is from information provided by the company note that as of sept 28 2021 otc pink as well as all other otc markets group lines will require companies on the platform to provide up to date disclosures pursuant to sec rule 15c2 11 2