Jason Paltrowitz is Executive Vice President of Corporate Services at OTC Markets Group.
What were the key theme(s) for your business in 2024?
In 2024, OTC Markets Group focused on three major themes to drive growth, enhance market transparency, and better serve global investors:
Continued Growth in International Business:
OTC Markets Group operates the largest U.S. stock market for non-U.S. equities, facilitating trading for international companies seeking access to U.S. investors. This year, 92% of our total trading volume came from non-U.S. equities, with 79% of that volume attributed to companies with market caps exceeding $1 billion. Reflecting the strong demand for cross-border investment opportunities, we launched two significant initiatives to enhance accessibility and flexibility for global investors.
First, we launched OTC Overnight, an innovative “overnight trading” service, enabling investors in any time zone to access securities on our markets and react to international news in real-time. Second, we launched the MOON ATS, an alternative trading system designed to provide a seamless trading experience for NMS listed securities. Both OTC Overnight and MOON ATS underscore our commitment to building infrastructure that empowers global investors while streamlining access to U.S. markets. These advancements strengthen our role as a bridge between U.S. investors and international companies.
Regulatory Reform and Investor Protection:
A key focus in 2024 was advancing regulatory initiatives to improve market transparency and investor protections. We introduced OTCID, a new identification framework designed to enhance accountability, improve compliance, and help investors make better-informed decisions. OTCID represents a significant milestone in creating a more transparent market for all participants.
Addressing Risks in Low-Priced Securities:
OTC Markets Group prioritized education of the risks associated with low-priced securities, including exchange-listed “penny stocks,” which often pose challenges for retail investors due to their volatility and potential for fraud. We supported industry efforts to crack down on risky practices in the micro- and small-cap markets. By promoting investor education, enhanced standards, and oversight, we aim to protect investors and uphold market integrity.
What was the highlight of 2024?
Several key milestones defined OTC Markets Group’s success in 2024:
Launch of Overnight Trading:
We introduced overnight trading, enabling investors to trade international securities outside traditional market hours. This initiative provides greater flexibility for global investors and enhances access to international markets.
Announcement of OTCID:
The rollout of OTCID marked a major advancement in improving market structure. This new identifier will enhance transparency and accountability, strengthening trust and confidence among market participants.
Growth in QX and QB Markets, Including Expansion into Korea:
Our OTCQX and OTCQB markets continued to experience robust growth, driven by strong demand from international and growth-stage companies. Notably, we expanded our global reach by facilitating new listings from South Korea, further broadening the opportunities available to U.S. investors.
Who were the most important/influential people at your firm in 2024?
While I am proud to have contributed to our success, the accomplishments of 2024 are a testament to the exceptional teams across OTC Markets Group. From our leadership team to those driving initiatives like the launch of OTCID, overnight trading, and the growth of our OTCQX and OTCQB markets, it has been a collective effort. Their expertise, dedication, and innovative thinking have been instrumental in executing our strategic priorities and delivering value to investors and companies globally.
What are your expectations for 2025?
Looking ahead to 2025, OTC Markets Group is focused on deepening global partnerships, expanding investor access, and enhancing market infrastructure:
“List Local, Trade Global” Growth
We are seeing growing interest from non-U.S. exchanges and companies seeking to leverage OTC Markets Group’s platform to gain access to U.S. investors while remaining listed on their local exchanges. A notable trend is the continued discount in valuations of non-U.S. equity markets, particularly in regions like the UK, which presents compelling opportunities for U.S. investors to diversify their portfolios.
Increased Engagement Through OTCID
As OTCID rolls out more broadly, we anticipate greater engagement from companies, brokers, and market participants. OTCID will help enhance transparency and governance while providing investors with clearer, more reliable information about the securities they are trading.
Solidifying Our Leadership in Non-U.S. Equities
With growing interest from Asian retail investors seeking trading access to the world’s leading companies, OTC Markets Group is well-positioned to strengthen its leadership as the platform for trading international equities. This growing demand reflects the global investor appetite for diversified, cross-border investment opportunities.
