What is the U.S. OTC securities market?
• The OTC market is composed of the OTC Bulletin Board (OTCBB) and the Pink Sheets. These markets are legal and are home to legitimate businesses, but they are vulnerable to abuse because the level of regulatory scrutiny is very low. Why is the BCSC concerned about the U.S. OTC securities market? • A disproportionate number of players in the U.S. OTC markets who engage in abusive activities have visible connections to B.C. Their activities damage the reputation of the province’s capital markets, harming the interests of legitimate issuers, investment dealers, and other market participants. Under Conditions of Registration for Investment Dealers that Trade in the U.S. Over-the-Counter Markets: • all registered investment dealers with B.C.
