Securities Attorney Laura Anthony Talks OTC Markets and OTCQX Market Tier

25 Jul, 2016, 05:00 ET from Legal & Compliance, LLC

WEST PALM BEACH, Florida, July 25, 2016 /PRNewswire/ --

Take five small-cap industry specialists with 100 years of collective experience in the sector, ask them about the OTCQX and their responses all point to the same conclusion: the OTCQX has a very good chance of becoming a bona fide venture capital exchange for small public companies.

So as to prevent the big companies of tomorrow from falling by the wayside today, OTC Markets Group, Inc., has expanded and adapted their platform to become the recognized and respected venue for small- and micro-cap companies.

Currently, OTC Markets' crowning achievement is the creation and development of the OTCQX market tier.  

The OTCQX possesses scaled-down but similar qualitative and quantitative requirements used by national exchanges such as NASDAQ or the NYSE MKT.  Although OTCQX-traded companies must meet minimum corporate governance, financial metrics, and trading prices, they are not required to file reports with the SEC. Rather, they can elect to submit simplified but detailed disclosure documents directly to OTC Markets.

OTC Markets created the OTCQX in 2007. It is a pro-business venue that does not list penny stocks but, should specific criteria be satisfied, stocks that were once considered penny stocks can graduate to a more sophisticated and respected market tier. In less than ten years, the OTCQX has become "the next step" for micro-cap issuers that endeavor to climb the ranks so that their shares become bona fide exchange-traded securities.

BMA Securities (BMA) is a recognized leader in financial services specializing in market making and trade execution. BMA President Burt Arnold founded the firm in 2001. Mr. Arnold began his career in 1993 as a registered representative and has a vast background in the investment industry. Mr. Arnold has been instrumental in taking companies public on the New York Stock Exchange, American Stock Exchange, NASDAQ, and Bulletin Board.

"The OTCQX has become the ultimate platform for issuers planning to list on an exchange," Arnold said.

Jason Paltrowitz is the Executive Vice President of Corporate Services for OTC Markets Group. Paltrowitz joined OTC Markets in 2013 and is currently the new business and relationship management across all regions domestically and globally.

"By definition, small companies have greater risk than larger companies, and OTC wants to create a venue that allows companies to be open and transparent to use digital and online technology to engage its investors and give investors the ability to see information to make investment choices," Paltrowitz said.

Monarch Bay Securities, LLC, is an independent broker-dealer registered with FINRA. CEO Keith Moore has seen the importance of OTC Markets and the OTCQX greatly increase in the past five years. Moore's experience and expertise in the investment banking sector spans twenty years.    

"Monarch Bay has been an OTC market maker for many years," Moore said. "We know that the OTCQX and the OTC markets have been key for capital formation of micro-cap public companies. Now, the OTCQX is lending its experience and credibility to support the launch of the new Reg A+ type of offering by providing critical liquidity."  

Seth Farbman is Chairman of VStock Transfer, LLC, a leading stock transfer firm with a focus on Nasdaq IPOs as well as private and public companies. Mr. Farbman has built a career servicing private and public companies and is well-versed on the impact the OTCQX has had on the micro-cap industry.  

"Many of our public issuer clients benefit from the transparency of the OTCQX, but I've been impressed with the additional steps that OTC Markets has taken to help their portfolio companies with exposure and liquidity," Farbman said.

Neil Levine is a partner at Friedman, LLP, and has over 25 years of public accounting experience. He directs audit engagements for SEC registrants, as well as private companies. Friedman, LLP, has served the accounting, tax and business consulting needs of public and private companies since 1924. Mr. Levine was one of the first small-cap specialists to recognize that the industry impact of OTC Markets was catapulted to a new level as the OTCQX gained traction.

Read full story here - Huffington Post

The Author:

Securities attorney Laura Anthony (and her experienced legal team provide ongoing corporate counsel to small and mid-size OTC and exchange traded issuers as well as private companies going public on the over-the-counter market, such as the OTCQB and OTCQX or an exchange such as NASDAQ or NYSE MKT. Legal & Compliance, LLC, is a comprehensive corporate, securities and business transactions law firm assisting clients in all aspects of commerce, including initial public offerings, reverse mergers, registered public offerings, exempt private offerings, all forms of complex corporate finance transactions, compliance with national exchanges such as the NASDAQ and NYSE MKT and the over-the-counter market trading platforms such as OTCQB and OTCQX, compliance with FINRA and DTC, strategic planning for unique management and ownership issues, and broad-scope legal services. Securities attorney Laura Anthony is an approved PAL Advisor with OTC Markets Group, the creator and author of SecuritiesLawBlog.com and the producer and host of LawCast.com, The Securities Law Network.  


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