OTC Markets Group Inc. today announced the addition of Utah brings its total to 25 states now recognizing its premium OTCQX market for the purposes of their Blue Sky Manual Exemption for secondary trading. The first, Vermont, recognized the OTCQX Market July 1, 2016.
So far, 22 states recognize both the OTCQX and OTCQB markets for the purposes of the Blue Sky Manual Exemption:
- Alaska, Arkansas, Colorado, Delaware, Georgia, Indiana, Iowa, Maine, Mississippi, Nebraska, New Jersey, New Mexico, Ohio, Oregon, Rhode Island, South Dakota, Texas, Utah, Washington, West Virginia, Wisconsin and Wyoming
Idaho, Kansas and Vermont recognize the OTCQX Market.
In release OTC Markets Group said it has fostered an ongoing dialogue with state regulators to inform them of the level of disclosure provided by companies whose shares are trading on the OTCQX and OTCQB markets. Each of the 25 adopting states tailors its approach with no-action letters, rule changes and administrative orders.
“We thank each of the respective state regulators whose efforts further underscore the quality of disclosure standards on our OTCQX and OTCQB premium trading markets,” OTC Markets Group president and CEO R. Cromwell Coulson said. “OTC Markets will continue to champion this regulatory recognition, which improves investor information availability, lowers regulatory complexity for public companies and ultimately improves capital formation.
“We look forward to building upon this momentum to proactively educate all remaining states in order to achieve our goal of nationwide Blue Sky recognition for public companies traded on the OTCQX best market.”
OTC Markets Group said state Blue Sky laws help inform investors by mandating companies to disclose information that is both current and accurate when offering or marketing securities. Regulators and brokers across the country rely on disclosure-based manual exemptions from individual state Blue Sky laws, with 44 states and jurisdictions maintaining manual exemptions.
They are pursuing marketplace exemptions in states with a Manual Exemption.