OTC Markets Group Listing Requirements


The OTC Markets Group, formerly known as the National Quotation Bureau (NQB), is an organization that facilitates the trade of Over The Counter (OTC) stocks and other securities. An Over The Counter stock is a financial security that does not trade on a formal stock exchange. Rather, these securities are traded through a dealer network such as OTC Market Group which include electronic quoting and lower listing requirements than a formal exchange. OTC securities are highly regulated securities by FINRA and the SEC.

The OTC Markets Group was formally established in its present form in 2010, and provides information on over 10,000 OTC securities. Presently, a network of over 100 established broker-dealers (institutions that act as a financial securities broker and/or dealers) trade on the OTC Markets system.

The OTC Markets Group platform is segregated into 3 distinct market tiers: the OTCQX, the OTCQB, and the Pink. Each of these different tiers is separated based on perceived risk levels, which depend on the quality and regularity of a listed company’s reporting information and disclosures.

OTCQX

The OTCQX, branded as the “OTCQX, The Best Market,” has the most stringent listing standards of the three OTC Markets. The OTCQX listing requirements necessitates that a company meets/follows high-level financial standards, corporate governance practices, U.S. securities law compliance practices, and must have a qualified third-party sponsor introduction.

The OTCQX has different eligibility requirements depending on whether a firm is international, U.S. based, or a bank.

OTCQX International and U.S. Financial Standards

Initial

Ongoing

Penny Stock Rule

Meet one of the following exemptions detailed below:

Net Tangible Assets:
$5mm: Less Than 3 Years Operations
$2mm: 3+ Years Operations

OR

Revenue:
$6 million average for last 3 years

OR

Bid:
$5; and
One of the below:
Net Income: $500,000
Net Tangible Assets: $1mm
Revenues: $2mm
Total Assets: $5mm

Bid Price

$0.25

$0.10

Market Cap

$10mm

$5mm

Price Quotes by Market Makers on OTC Link ATS

1

2 (within 90 days)

Shareholders

50 beneficial shareholders each owning at least 100 shares

50 beneficial shareholders each owning at least 100 shares

For full OTCQX International listing standards, please click here.

For full OTCQX U.S. listing standards, please click here.

Companies who wish to be listed on the OTCQX must also have a third-party sponsor from a pre-approved list.

For a list of OTCQX Sponsors, please click here.

OTCQB Requirements

Eligibility Requirements:

  • Not be in bankruptcy
  • Meet minimum bid price test of $0.01
  • Be listed on a Qualified Foreign Exchange or be a U.S. reporting company (SEC, Reg A+, or U.S. Bank)
  • Submit a Letter of Introduction from a firm qualified to sponsor companies on OTCQX

Verification Requirements:

  • Maintain a Verified Company Profile
  • Post initial and annual OTCQB Certification

For an overview of OTCQB listing requirements, please click here.

For a complete listing standards catalog for the OTCQB, please click here.

OTC Pink

Formerly known as “The Pink Sheets,” the OTC Market Group’s “Pink” is the least regulated of the three market tiers. Branded as “Pink, The Open Market,” there are no listing requirements or standards to get listed on this exchange platform besides filing a Form 15C211.

Companies that trade on the Pink include penny stocks, shells, distressed companies, delinquent companies, and companies that have limited their disclosure.

Listing Fees

The application and annual fees for each of the OTC tiers are listed below:

Application Fees

OTCQX

OTCQB

OTC Pink

Application Fee

$5,000

$2,500

$1,000

Annual Fee

$20,000

$10,000

$5,000

How to Apply

For a complete online walk-through of the application process, please visit the OTC Market Group’s Get Traded Page.

A Transfer Agent You Can Count On

As a full-service transfer agency with over 30 years of industry experience, Colonial Stock Transfer can assist your firm with getting listed on the OTC Market Group’s trading platform. To speak with a professional today or learn more about Colonial Stock Transfer, please contact us using the Learn More box at the top right of the page.