New Capital Markets Study: International Public Companies Get Home Market and US Boost From Cross-Trading on OTCQX

Stocks and Financial Services Press Releases Thursday June 21, 2018 18:41
NEW YORK--21 Jun--PRNewswire/InfoQuest
  • Independent Study finds international companies trading on OTCQX experience enhanced value and liquidity in their home markets after joining

International companies, with a primary listing outside the US,   experienced a 28% increase in trading volume by number of shares within their home market after joining the OTCQX(R) Best Market, according to a new study released today by   OTC Markets Group Inc. (OTCQX: OTCM). In addition, companies saw a 7-fold increase in US ownership.

Download The OTCQX Advantage: Benefits for International Companies

The independent study, "The OTCQX Advantage: Benefits for International Companies," was conducted by strategic advisory firm   Oxford Metrica to evaluate the value and liquidity impact within an international company's home market upon cross-trading on OTCQX, the premium market of the US over-the-counter ("OTC") equity market. The study evaluated a data set of over 500 international issuers that have traded on the OTCQX Market since 2007.

"We are pleased to deliver a premium market for cross-trading that provides executive management and investor relations teams with tangible, measurable results that correlate to enhanced visibility, growth in US ownership and an increase in shareholder value, while improving the respective home market liquidity," said Jason Paltrowitz, Executive Vice President of Corporate Services at OTC Markets Group.   "This latest study is indicative of the demonstrated quality of OTCQX Market and the opportunity presented for established, investor-focused international companies to experience incremental benefits of an efficient, cost-effective path to trade among leading global issuers in the US capital markets."

Study Findings include:
  • US ownership increased by 7-fold after joining the OTCQX Market
  • Liquidity, as measured by trading volume by number of shares, increased by 28% within the home market following a move to the OTCQX Market
  • Trading volume by number of shares increased 37% within the OTC market
  • Trading volume of companies falling into the lower half of the distribution by size increased 43%
  • Trading volume of companies falling into the upper half of the distribution by size increased 12%
About the Study and Methodology

The study was commissioned by OTC Markets Group and conducted by Oxford Metrica. All international companies that have been admitted to the OTCQX since 2007 were analyzed. The resultant portfolio consists of more than 500 firms. Price and volume data one year prior to joining OTCQX and three years after joining were obtained, as well as ownership data one year prior and 5-years post-join.

  • The empirical study evaluates the value and liquidity impact within the home market of the respective international firms once they have joined OTCQX.
  • The value creation is measured as the performance of the share price, after controlling for market returns and idiosyncratic factors.
  • The liquidity impact is measured by the change in the average daily Trading Volume Multiplier(TM).
A copy of the   full study is available on www.otcmarkets.com .

In January 2016, a previous study by Oxford Metrica, OTCQX: The Clear Advantage, evaluated the impact on liquidity of companies that trade on OTCQX. Findings indicated that after firms joined the OTCQX Market, there were significant increases in liquidity: trading volume by number of shares and dollar volumes increased; bid-ask spreads fell and there was an increase in the number of broker dealers per security.

About OTC Markets Group Inc.

OTC Markets Group Inc. (OTCQX: OTCM) operates the OTCQX(R) Best Market, the OTCQB(R) Venture Market and the Pink(R) Open Market for 10,000 U.S. and global securities. Through OTC Link(R) ATS and OTC Link ECN, we connect a diverse network of broker-dealers that provide liquidity and execution services. We enable investors to easily trade through the broker of their choice and empower companies to improve the quality of information available for investors.

To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com .
OTC Link ATS and OTC Link ECN are operated by OTC Link LLC, member FINRA/SIPC and SEC regulated ATS.
Subscribe to the OTC Markets RSS Feed
Media Contact:
OTC Markets Group Inc., +1 (212) 896-4428, media@otcmarkets.com
Logo - https://mma.prnewswire.com/media/322662/otc_markets_group_logo.jpg

Latest Press Release

Fitch Affirms Makro#s Rating at #A(tha)#; Outlook Stable

Fitch Ratings (Thailand) Limited has affirmed Siam Makro Public Company Limited's National Long-Term Rating at 'A(tha)'. The Outlook is Stable. KEY RATING DRIVERS Overseas Expansion Drives Rising Leverage: Makro's funds from operations (FFO) adjusted...

Fitch Affirms CP ALL#s Ratings at #A(tha)#; OutlookStable

Fitch Ratings (Thailand) Limited has affirmed retailer CP ALL Public Company Limited's National Long-Term Rating at 'A(tha)' with a Stable Outlook. Fitch has also affirmed the National Long-Term Rating of its secured bonds at 'A(tha)', the National...

KTC achieves major milestone with a net profit of 3.911 billion Baht in Q3,with preparations in motion to diversity into Nano and Pico Finances.

KTC declares a net profit for the end of Q3 of 3.911 billion Baht. Profits have grown 65 percent due to a surge in credit card spendings, receivables from credit cards and personal loans, along with the upholding of approval standards within appropriate...

Photo Release: KBank and AIS support hospitals to make transition toward the Healthcare 4.0 era

Recently, at KBank Phahon Yothin Building, Mr. Wirawat Panthawangkul (right), KBank Senior Executive Vice President, and Mr. Yongsit Rojsrikul, Chief Enterprise Business Officer, Advanced Wireless Network Company Limited of AIS Group, signed a memorandum...

AEON partners with JCB to launch AEON J-Premier Platinum Credit Card to offer exclusive privileges throughout Thailand and Japan

AEON Thana Sinsap (Thailand) Public Company Limited partners with JCB International (Thailand) Co., Ltd. to launch "AEON J-Premier Platinum Credit Card" that will allow Thais to enjoy everything Japan, with exclusive privileges and offers in dining,...

Related Topics