OTC Markets Group Offers Temporary Exemption for OTCQX Alternative Reporting Companies Moving to OTCQB
Last Wednesday, the OTC Markets Group announced it is offering an exemption for OTCQX companies that report under the Alternative Reporting Standard (ARS) to trade on the OTCQB Venture Market if they do not meet the new, higher OTCQX financial standards and eligibility requirements.
In 2016, OTC Markets Group strengthened financial standards and introduced corporate governance standards and eligibility requirements for the OTCQX Best Market. The rule changes were designed to further enhance the quality of OTCQX and better align the market with established regulatory standards and public company best practices. Existing OTCQX companies were required to comply with the new standards by January 1, 2017, or be transitioned to the OTCQB or Pink® markets.
Currently, OTCQB market standards do not admit companies that report under ARS. OTCQX has admitted companies that make public disclosure of financial reporting and other material news under the ARS standards since its inception in 2007.OTC Markets Group believes the ARS disclosure standard is appropriate for qualifying OTCQX companies moving to the OTCQB Venture Market due to the recently heightened OTCQX qualification standards.
For more about the 2016 OTCQX rule changes, click HERE.
See the OTC Market Group’s press release HERE.