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OTC Markets Blog

Latest commentary on Market Structure, Compliance, Small Cap and Reg A+ issues, including insights on the news and trends that affect the public markets.

Author

Matt Fuchs

Matthew Fuchs, EVP of Market Data, leads the product development, distribution and sales of market data at OTC Markets Group. Prior to joining OTC Markets Group, he served in a number of financial technology roles at the National Research Exchange, Bearing Point and Arthur Andersen. Matt received a BA from Columbia University

Blue Sky Compliance Data – Exemption Types & Data Transparency

Data Transparency is not simply about making more data available; it is about helping users, both business and technical, better understand a data set and use that information to improve processes and products across an organization.  This concept of “transparency” was a guiding factor in our development of the Blue Sky Compliance product. After analyzing our new data set and identifying additional areas for automation and process improvement, our latest blog delves deeper into  Exemption Type data and examines how users can leverage this data point to reduce complexity and increase automation.

Continue reading “Blue Sky Compliance Data – Exemption Types & Data Transparency”

Blue Sky Compliance Data – Key Trends

An analysis of data produced by our new Blue Sky Compliance data product has yielded some compelling insight into the OTC equities market.  This latest blog highlights some of the more current trends and identifies additional areas for automation and process improvement.

Continue reading “Blue Sky Compliance Data – Key Trends”

Automating and Simplifying Blue Sky Data Compliance

OTC Markets Group continues to develop products and solutions that make our markets more transparent, efficient and cost-effective for our issuers, market participants and investors.  We are therefore excited to announce the launch of our new Blue Sky Compliance data service.

Continue reading “Automating and Simplifying Blue Sky Data Compliance”

Quantifying Listed Low Price Security Risk – Small Cap Compliance Risk Scoring

The events of 2020 have raised plenty of compliance issues within the equity markets including the explosion of retail activity, day-to-day event driven volatility and the influx of COVID-19/health care sector securities.  They have also highlighted an issue that has often been overlooked during more sanguine markets – the large number of ‘Low Priced Securities’ (LPS) on U.S. exchanges. Continue reading “Quantifying Listed Low Price Security Risk – Small Cap Compliance Risk Scoring”

Stock Promotion – Context, Concerns & Potential Solutions

There is an adage that stocks need to be sold by having their stories widely told.  This is especially important for smaller companies looking to promote themselves to customers and build their visibility with the investment community. Continue reading “Stock Promotion – Context, Concerns & Potential Solutions”

Shell Game

During conversations with compliance and risk departments over the past year, the topic of shell companies always comes up.  For diligent compliance officers the reason for this focus is obvious, shell companies and more specifically trading with their affiliates are noted specifically in key notices and regulations, including: Continue reading “Shell Game”

Quality Recommendations

At first look, FINRA Rule 2114, Recommendations to Customers in OTC Equity Securities (The OTC Rec Rule), seems onerous and vague – two of a Compliance Officer’s least favorite adjectives.  The initial requirement reads as follows: Continue reading “Quality Recommendations”

Don’t Be Pound Foolish

Which US Equity Market has the largest number of securities NOT considered Penny Stocks according to SEC Rule 3a51-1? Based on the location of this post, you should be able to guess…. but that should make it no less surprising.  The numbers speak for themselves: Continue reading “Don’t Be Pound Foolish”

5 Get Smart Tips on OTC Markets Compliance

The OTC equity market can seem overwhelming – with so many securities and data points to track, many compliance professionals are at loss for where to start.  The good news is you are not alone.

Here are 5 tips to understanding the OTC Market

Continue reading “5 Get Smart Tips on OTC Markets Compliance”

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