OTC Markets Group Mid-Year Market Data Outlook

OTC Markets Group Mid-Year Market Data Outlook

Time Stamp: September 7, 2023 4:45 AM
Source Node: 2257217

The United States is the largest capital market in the world as per a recent SIFMA report. OTC Markets Group has long been a venue for companies outside of the U.S. looking to trade and access U.S. investors.

U.S. investors use the OTC Markets to trade international securities, particularly investment opportunities in Europe and Asia.

In the first half of 2023 over 9,100 international securities traded on OTC Markets representing $154.5 billion in trading volume. Non-US securities trading – now constitutes over 85% of OTC Markets’ total volume with over 9,000 international securities. It’s a testament to the company’s growing stature as an international gateway for public companies.

As we explore the shifting landscape of OTC Markets and its appeal to firms outside the U.S., we uncover a dynamic platform that embraces and revolutionizes cross-border trading, redefining how companies from around the world engage with US investors and capitalize on international investment opportunities.

International Securities Drive Trading

A majority of dollar volume on OTC Markets is driven by trading international securities, whose home market exchange is outside the US. A large percentage of this trading for the first half of the year occurred in securities primarily based in Asia and Europe.

Securities with primary listings on the Euronext Paris, the London Stock Exchange, the Frankfurt Stock Exchange and Swiss Stock Exchange comprised 33% of OTC Markets’ trading volume over the first half of this year.

Also prominent among the top exchanges at the mid-year mark are securities with primary listings on the Tokyo Stock Exchange, the Hong Kong Stock Exchange, and ASX – Australian Securities, encompassing nearly 25% of trading volume on OTC Markets.

As such, leading global companies like Adidas (ADDYY), Heineken (HKHHY), Tencent Holding (TCEHY), Nintendo (NTDOY), and Nestle S.A. (NSRGY) are household brands names for investors, drawing their attention to OTC Markets as the avenue for accessing global equities.

OTC Markets Securities by Home Market Exchange (First Half of 2023)

–

Dollar Volume

Percent of Total

International (Non-US)

$ 154,535,671,173

–

Asia

$ 56,399,682,535

36.50%

Europe

$ 86,941,783,655

56.26%

ME-Africa

$ 941,991,717

0.61%

North America

$ 9,305,387,239

6.02%

South America

$ 946,826,026

0.61%

OTC Markets International Securities by Security Type & Reporting Status (First Half of 2023)

–

Dollar Volume

Percent of Total

Trades

Percent of Total

All

$ 180,389,168,506

–

29,608,100

–

International

(Non-US)

$ 154,535,671,173

85.67%

20,230,176

68.33%

ADRs

$ 136,220,168,297

75.51%

17,010,716

57.45%

SEC Reporting

$ 33,455,069,534

18.55%

8,909,173

30.09%

Billion+ Mkt Cap

$ 149,734,352,148

83.01%

18,170,923

61.37%

A Global Gateway Championing Cross-Border Trading

The appeal of OTC Markets Group extends beyond investors. It also presents opportunities for foreign firms seeking to expand their presence and raise capital in the U.S. market. By creating a secondary market on OTC Markets, these firms gain exposure to a wide base of American investors and benefit from trading their securities during US market hours in USD.

· 75% of the Dollar Volume on OTC Markets in 1st Half of 2023 was in ADRs, also known as American Depository Receipts, which represent one ordinary share of a foreign-based corporations security

· 83% of the Dollar Volume on OTC Markets in 1st Half of 2023 was in Billion + Market Cap securities, the majority of which are international based companies

OTC Markets’ cost-effective and user-friendly approach has allowed the company to evolve into a preferred destination for international issuers, streamlining the process of accessing US capital markets.

Major companies have increasingly found their way to be traded on OTC Markets. OTC Markets’ platform allows these companies to cross-trade their securities and access investors beyond their home exchanges.

As for investors, this means increased accessibility to some of the world’s most prominent and influential companies through their retail broker-dealer.

Conclusion

OTC Markets Group has experienced a notable increase in trading activity for international securities, providing an avenue for investors seeking opportunities outside the U.S. With non-U.S. securities accounting for the majority of its trading volume, OTC Markets has solidified its position as a preferred solution for accessing a diverse range of foreign securities.

The United States is the largest capital market in the world as per a recent SIFMA report. OTC Markets Group has long been a venue for companies outside of the U.S. looking to trade and access U.S. investors.

U.S. investors use the OTC Markets to trade international securities, particularly investment opportunities in Europe and Asia.

In the first half of 2023 over 9,100 international securities traded on OTC Markets representing $154.5 billion in trading volume. Non-US securities trading – now constitutes over 85% of OTC Markets’ total volume with over 9,000 international securities. It’s a testament to the company’s growing stature as an international gateway for public companies.

As we explore the shifting landscape of OTC Markets and its appeal to firms outside the U.S., we uncover a dynamic platform that embraces and revolutionizes cross-border trading, redefining how companies from around the world engage with US investors and capitalize on international investment opportunities.

International Securities Drive Trading

A majority of dollar volume on OTC Markets is driven by trading international securities, whose home market exchange is outside the US. A large percentage of this trading for the first half of the year occurred in securities primarily based in Asia and Europe.

Securities with primary listings on the Euronext Paris, the London Stock Exchange, the Frankfurt Stock Exchange and Swiss Stock Exchange comprised 33% of OTC Markets’ trading volume over the first half of this year.

Also prominent among the top exchanges at the mid-year mark are securities with primary listings on the Tokyo Stock Exchange, the Hong Kong Stock Exchange, and ASX – Australian Securities, encompassing nearly 25% of trading volume on OTC Markets.

As such, leading global companies like Adidas (ADDYY), Heineken (HKHHY), Tencent Holding (TCEHY), Nintendo (NTDOY), and Nestle S.A. (NSRGY) are household brands names for investors, drawing their attention to OTC Markets as the avenue for accessing global equities.

OTC Markets Securities by Home Market Exchange (First Half of 2023)

–

Dollar Volume

Percent of Total

International (Non-US)

$ 154,535,671,173

–

Asia

$ 56,399,682,535

36.50%

Europe

$ 86,941,783,655

56.26%

ME-Africa

$ 941,991,717

0.61%

North America

$ 9,305,387,239

6.02%

South America

$ 946,826,026

0.61%

OTC Markets International Securities by Security Type & Reporting Status (First Half of 2023)

–

Dollar Volume

Percent of Total

Trades

Percent of Total

All

$ 180,389,168,506

–

29,608,100

–

International

(Non-US)

$ 154,535,671,173

85.67%

20,230,176

68.33%

ADRs

$ 136,220,168,297

75.51%

17,010,716

57.45%

SEC Reporting

$ 33,455,069,534

18.55%

8,909,173

30.09%

Billion+ Mkt Cap

$ 149,734,352,148

83.01%

18,170,923

61.37%

A Global Gateway Championing Cross-Border Trading

The appeal of OTC Markets Group extends beyond investors. It also presents opportunities for foreign firms seeking to expand their presence and raise capital in the U.S. market. By creating a secondary market on OTC Markets, these firms gain exposure to a wide base of American investors and benefit from trading their securities during US market hours in USD.

· 75% of the Dollar Volume on OTC Markets in 1st Half of 2023 was in ADRs, also known as American Depository Receipts, which represent one ordinary share of a foreign-based corporations security

· 83% of the Dollar Volume on OTC Markets in 1st Half of 2023 was in Billion + Market Cap securities, the majority of which are international based companies

OTC Markets’ cost-effective and user-friendly approach has allowed the company to evolve into a preferred destination for international issuers, streamlining the process of accessing US capital markets.

Major companies have increasingly found their way to be traded on OTC Markets. OTC Markets’ platform allows these companies to cross-trade their securities and access investors beyond their home exchanges.

As for investors, this means increased accessibility to some of the world’s most prominent and influential companies through their retail broker-dealer.

Conclusion

OTC Markets Group has experienced a notable increase in trading activity for international securities, providing an avenue for investors seeking opportunities outside the U.S. With non-U.S. securities accounting for the majority of its trading volume, OTC Markets has solidified its position as a preferred solution for accessing a diverse range of foreign securities.

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