Enter to open, tab to navigate, enter to select
OTC Markets
Practical Law Glossary Item 2-573-0785 (Approx. 2 pages)
Glossary
OTC Markets
OTC Markets refers to OTC Link ATS (OTC Link), an SEC-registered electronic interdealer quotation system that displays quotes from broker-dealers, sales volume, and other information for over-the-counter (OTC) securities (securities not listed on NASDAQ, the NYSE, or any other US national securities exchange). All participants in the OTC Markets are broker-dealers that are registered with the SEC and are members of FINRA.
The securities quoted on the OTC Markets are organized into three separate marketplaces based on the level of disclosure companies provide to investors:
- OTCQX. This is the highest-tier marketplace.
- OTCQB. This is the second-tier marketplace, for early-stage and developing companies that are unable to qualify for OTCQX.
- OTC Pink. This is the lowest-tier marketplace and consists of three categories of issuers: Current Information, Limited Information, and No Information.
The OTC Link system is operated by OTC Link LLC, a wholly-owned subsidiary of OTC Markets Group Inc. OTC Link LLC is regulated by FINRA and the SEC. For more information on the OTC Markets, see the OTC Markets Group website.
For more information on securities exchanges and other trading markets generally, see Practice Note, Selecting a US Securities Exchange.