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U.S. Securities and Exchange Commission


Division of
Trading and Markets


About the Division

Broker-Dealers

Banks and Other Depository Institutions

Credit Rating Agencies

Exchanges

Over-the-Counter Markets

ECNs/Alternative Trading Systems

National Market System

Municipal Markets

Clearing Agencies

Transfer Agents

Additional Topics

Frequently Requested Documents

 

Over-the-Counter Market

The Financial Industry Regulatory Authority (FINRA) regulates broker-dealers that operate in the over-the-counter (OTC) market. Many equity securities, corporate bonds, government securities, and certain derivative products are traded in the OTC market. The OTC Bulletin Board and Pink OTC Markets, Inc., for example, operate within the OTC market.

OTC Bulletin Board

The OTC Bulletin Board (OTCBB) is an electronic inter-dealer quotation system that displays real-time quotes, last-sale prices, and volume information for many over-the-counter securities that are not listed on a national securities exchange. FINRA oversees the OTCBB.

Under the OTCBB's eligibility rule, companies that want to have their securities quoted on the OTCBB must file current financial reports with the SEC or with their banking or insurance regulators. For more information, you may view the OTCBB's website at www.otcbb.com.

Pink OTC Markets, Inc.

Pink OTC Markets, Inc. operates an electronic inter-dealer quotation system, known as Pink Quote, that displays quotes and last-sale information for many OTC equity securities. Pink Quote does not require companies whose securities are quoted on its system to meet any eligibility requirements. With the exception of some foreign issuers, the companies quoted on Pink Quote tend to be closely held, very small and/or thinly traded. Most issuers do not meet the minimum listing requirements for trading on a national securities exchange. Many of these companies do not file periodic reports or audited financial statements with the SEC. As such, it may be difficult for the public to find current, reliable information about companies quoted through Pink Quote. Pink OTC Markets, Inc. also offers two voluntary services, OTCQX and OTCQX International, for companies meeting certain minimum criteria. Companies qualifying for OTCQX or OTCQX International may have recently been delisted from trading on a national securities exchange, or may be listed on a foreign securities market but not on a U.S. exchange.

Pink OTC Markets, Inc. is a privately held company, still commonly referred to as "Pink Sheets," which was the name of the company during the days when it was a publication on pink paper that listed the names and phone numbers of broker-dealers providing quotes in OTC equity securities. For further information on the services offered by Pink OTC Markets, Inc. you may view its websites at www.pinkotc.com, www.otcmarkets.com and www.otcqx.com

 

http://www.sec.gov/divisions/marketreg/mrotc.shtml

Modified: 05/05/2010