OTC Markets Group Addresses SEC’s Misinformed White Paper
Last week, Jason Paltrowitz (EVP & Head of Corporate Services at OTC Markets Group) shared a post on the OTC’s blog “Addressing the SEC White Paper on OTC Equities“.
On December 16, 2016, the SEC published a white paper titled “Outcomes of Investing in OTC Stocks” that many feel was excessively harsh on OTC traded securities. Paltrowitz described the paper as “overly negative and misinformed”.
Sharing 4 shortcomings of the white paper, Paltrowitz shows that OTC securities are better performing, more transparent, and only part of a larger market manipulation problem with all US exchanges.
Paltrowitz says that;
1: The paper relies on incomplete data that is inherently negatively biased.
2: The study does not reflect changes to our market structure in 2014.
3: The paper erroneously concludes that OTC Markets is not successful at graduating companies to an exchange.
4: Manipulative stock promotion is an industry-wide problem that is not limited to companies that do not provide disclosure to investors.
Read Paltrowitz’s full post HERE.