OTC Markets Group is set to introduce a significant update to the U.S. OTC equity market.
In July 2025, we will launch OTCID, a new basic reporting market requiring greater disclosure from companies. The Pink Current market will be eliminated. These changes mark a pivotal step towards our mission to provide greater transparency for investors.
With the introduction of the OTCID Market, we are making it clear to market participants—investors, brokers, regulators and issuers — that companies traded on this market have taken responsibility for their U.S. traded securities. Those that are downgraded to Pink Limited or the Expert Market represent issuers that have no active relationship with OTC Markets Group and may carry more risk.
Here are three key things to know about the introduction of OTCID—and what it means for the financial markets:
1. Defining the Markets for Compliant Companies
OTCID provides a clearer distinction between issuers that meet basic disclosure requirements and those that choose not to.
The launch of OTCID is a major step forward in our efforts to drive transparency and provide investors with more clarity around the investments made in OTC-traded securities. The enhanced transparency and compliance requirements of OTCID could pave the way for shifts in investment behavior.
Companies that fail to meet the new requirements will be relegated to the Pink Limited or Expert Market:
- Pink Limited: Companies that do not certify their compliance with established reporting standards, have limited availability of disclosure or financial information and may not support their U.S. market
- Expert Market: Companies that fail to provide even minimal public disclosure requirements and are not proprietary quote eligible per SEC Rule 15c2-11
Pink Limited will serve as a warning that these companies are unengaged and that gaps in their information may exist. Investors should proceed with caution. This differentiation is crucial as it helps investors more easily identify companies that adhere to the updated standards, and to filter out unengaged or opaque issuers.
2. Enhanced Reporting Obligations
One of the most critical aspects of the OTCID launch is the introduction of enhanced reporting obligations. Companies trading on OTCID will be required to meet basic reporting standards, including quarterly and annual disclosures. Additionally, management certifications and company profile updates will be mandatory, giving greater accountability and transparency for investors. OTCID helps ensure that the corporate information shared with U.S. investors is accurate and remains up to date for those companies that aren’t able to meet the qualitative standards of our OTCQX and OTCQB markets.
To make a smooth transition to OTCID, companies are preparing now. This involves applying to OTCID – Disclosure & News Service (DNS), which facilitates communication and news flow between companies and their investors. Companies will need to provide current and accurate disclosures through the DNS, the SEC’s EDGAR system or the Canadian SEDAR system. Additionally, the new rule set requires domestic companies to complete an annual management certification and foreign companies to complete a 12g3-2(b) certification.
All OTCID companies must maintain a verified profile on the OTC Markets Group’s website, and U.S. and Canadian companies will provide share data through the Transfer Agent Verified Shares Program (TAVSP).
OTC Markets Group is asking for submissions for the new OTCID market to be completed by May 1, 2025. This is to ensure that companies are able to comply with the requirements to trade on this new market as of July 1, 2025.
3. Opportunities for International Companies
More and more international companies are turning to OTC Markets to diversify their shareholder base and drive volume to back to their home market. Retail and institutional players often turn to the over-the-counter market to access equities from non-U.S.-headquartered firms—particularly during times of economic volatility.
The launch of OTCID presents another option for companies looking to access U.S. investors. For many, this will serve as a first step in the path to upgrading to our higher level OTCQX and OTCQB markets. Investors can approach these non-U.S. equities with greater peace of mind as OTC Markets Group continues to institute more rigorous disclosure requirements for our markets.
By meeting the OTCID standards, international companies can benefit from a more organized and transparent market, making it easier to attract investors and grow their businesses.
For more information on OTCID, visit www.otcmarkets.com/corporate-services/otcid
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