OTC Markets Group Launches OTCID™ Basic Market, In Major Structural Upgrade to U.S. OTC Equities Markets

Core Viewpoint - OTC Markets Group Inc. has launched the OTCID™ Basic Market, a significant upgrade aimed at enhancing transparency and disclosure standards in the over-the-counter (OTC) equities market [1][2]. Group 1: Market Structure Changes - The introduction of the OTCID™ Basic Market replaces the Pink Current Market, providing a more transparent framework for companies engaging with U.S. investors through consistent reporting [2]. - Companies on the OTCID™ Basic Market must meet specific disclosure benchmarks, including timely quarterly and annual financials, management certifications, and updated company profiles [3]. Group 2: Company Engagement and Compliance - OTC Markets Group supports companies that commit to timely and consistent disclosure, emphasizing that reliable information enhances market quality and investor confidence [4]. - A total of 1,237 securities from the U.S. and key international markets have met the OTCID requirements, demonstrating a commitment to timely disclosure and engagement with U.S. investors [4]. Group 3: Market Advancement and Downgrades - The OTCID serves as a strategic entry point for companies, with 61 companies, including Bayer AG and OMV AG, qualifying for the OTCQX Best Market since January, indicating a demand for higher visibility and governance [5]. - Companies failing to meet OTCID requirements are downgraded to the Pink Limited™ Market or the Expert Restricted Market, with the former serving as a warning for limited issuer involvement [6]. Group 4: Mission and Market Efficiency - By distinguishing between active and inactive issuers, OTC Markets Group aims to foster informed investment decisions and create a more efficient public market [7].