Over-The-Counter (OTC) securities are securities not listed on a national securities exchange. These securities generally trade on Alternative Trading Systems (ATSs) which are quotation mediums and might include electronic interdealer quotation systems that display quotes from broker-dealers for many OTC securities.  Presently there are only two interdealer quotation systems, Global OTC ATS (part of NYSE Group), and OTC Link ATS (operated by OTC Markets). "Market makers" and other broker-dealers who buy and sell OTC securities can use these ATSs to publish their bid and ask quotation prices. Each ATS, has different eligibility requirements for quoting OTC securities on their systems.  Investors may review these requirements on the websites of Global OTC ATS (https://www.globalotc.com) and OTC Link ATS (http://www.otcmarkets.com). In addition, some companies that issue OTC securities do not file periodic reports or audited financial statements with the SEC, making it very difficult for investors to find current, reliable information about those companies.  Investors should take extra care to thoroughly research any OTC security issued by a company that does not provide current information.   

On September 16, 2020, the SEC adopted amendments to Rule 15c2-11, which governs the publication or submission of quotations by broker-dealers, to enhance investor protection and improve issuer transparency. Except for a few limited exceptions, these amendments restrict the ability of brokers-dealers and other market makers from publishing quotations for companies of OTC stocks that have not provided current and publicly available financial information.  Investors in these OTC stocks may incur costs associated with a decrease in liquidity and share value that may result from these amendments’ restrictions on quotations in these stocks.