On Wednesday, OTC Markets Group unveiled the OTCID Basic Market, which the company described as a “major structural upgrade” to the US over-the-counter (OTC) equities landscape.
OTC Markets Group Announces ‘Major Structural Upgrade’ to US OTC Equities Markets
It replaces the former Pink Current Market with what is said to be a more transparent, rules-based tier aimed at improving disclosure and investor confidence.
The newly launched market requires companies to meet specific benchmarks, including quarterly and annual financial reporting, management certifications, and up-to-date company profiles.
“We’re supporting companies that choose to connect with the market and commit to timely, consistent, ongoing disclosure,” said Cromwell Coulson, President and CEO of OTC Markets Group.
“That data flows directly into investor screens and broker-dealer machines, enhancing transparency, improving price discovery, and driving better outcomes.”
OTC Markets Group said a total of 1,237 securities from the US and major international markets, including Canada, Australia, the UK, Japan and Hong Kong, have already taken the necessary steps to meet OTCID requirements.
OTC Markets stated that the initiative provides a strategic entry point for companies engaging with US investors, noting that 61 issuers, including Bayer AG and OMV AG, have since transitioned to the OTCQX Best Market.
Companies failing to meet OTCID’s disclosure standards have been relegated to the Pink Limited or Expert Restricted Markets, with the latter barring retail investor access.
The firm said the overhaul aims to create clearer distinctions between active and inactive issuers and promote a more efficient and transparent marketplace.
