OTC Markets Group (OTCQX: OTCM) has received Blue Sky recognition in several states. Vermont has recognized the OTCQX market and Iowa, Wyoming and Washington have recognized both OTCQX and OTCQB. Each state recognized these markets for their Blue Sky Manuel Exemption.
Cromwell Coulson, CEO of OTC Markets said they were excited to see these states lead the way.
“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.”
OTC Markets states that regulators and brokers across the country rely on disclosure-based manual exemptions from individual state Blue Sky laws. Thirty-eight U.S. states and jurisdictions maintain manual exemptions, which allow for secondary trading of qualifying companies as long as certain key information about the company is published in a nationally recognized securities manual or its electronic equivalent.
OTC Markets explains it has embarked on a campaign to educate state regulators about the current information offered by companies traded on the OTCQX and OTCQB markets. The Vermont Securities Regulations recognized the OTCQX Best Market, effective July 1, 2016, while Washington and Wyoming granted the exemption to OTCQX and OTCQB through no-action letters. Iowa securities regulators issued administrative orders recognizing each market.
“NASAA and individual state regulators have recognized that improving online access to current company information serves the goal of investor protection,” said Dan Zinn, General Counsel of OTC Markets Group. “We appreciate their willingness to act quickly and we look forward to working with more states in the coming months.”