OTC Markets Group announced this week that several U.S. states have recognized its various markets.
The Vermont state regulator now recognizes OTCQX while Washington, Wyoming and Iowa securities regulators recognize the OTCQX and OTCQB as securities manuals for the purposes of each state’s Blue Sky Manual Exemption.
State Blue Sky laws assist investors by ensuring companies are transparent and accurate when providing information during the marketing and offering of securities.
“We are excited to see Vermont, Washington, Wyoming, and Iowa lead the way in recognizing our premium trading markets for the purposes of Blue Sky Manual Exemption,” said R. Cromwell Coulson, President and CEO of OTC Markets Group. “The OTCQX and OTCQB markets are built on the philosophy of using data-driven standards to provide investors with online access to current public information.”
“We believe these initial state recognitions are an important first step in garnering support from additional states and ultimately achieving our goal of gaining Blue Sky recognition from all 50 states for our OTCQX and OTCQB markets.”
Regulators and brokers across the United States rely on disclosure-based exemptions from individual Blue Sky laws. Currently, 38 states and jurisdictions have manual exemptions which allow for the secondary trading of qualifying companies as long as some specific company information is published in a nationally recognized securities manual or its electronic equivalent
OTC Markets Group is educating state regulators about accessible and free public online disclosure of current information offered by OTCQX and OTCQB-traded companies.
Effective July 1, 2016, section 5-9 of the Vermont Securities Regulations recognizes the OTCQX Best Market. Washington and Wyoming chose to grant exemptions to OTCQX and OTCQB through no-action letters. In Iowa, securities regulators issued administrative orders which recognize each market.
“NASAA and individual state regulators have recognized that improving online access to current company information serves the goal of investor protection,” OTC Markets Group general counsel Dan Zinn said. “The updated manual exemptions in Vermont, Washington, Wyoming and Iowa support increased information availability and more efficient trading on the OTCQX and OTCQB markets.
“We appreciate their willingness to act quickly and we look forward to working with more states in the coming months.”
Tony Zerucha is the managing editor of Bankless Times.
A two-time LendIt Journalist of the Year nominee, Tony has written more than 2,000 original articles on the blockchain, peer-to-peer lending, crowdfunding and emerging technologies over the past seven years, making him one of the senior writers in the alt-fi sector.
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