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



OTC Markets Group

OTC Markets

Securities and Exchange Commission


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