OTC Markets Group Inc (OTCQX:OTCM) has introduced a premium Blue Sky Data Product to help broker dealers stay in compliance with State Securities rules for more than 16,000 OTC Equity Securities and 80,000 OTC Corporate Fixed Income Securities.
These securities are traded on the OTC market rather than on an exchange, and the regulations that govern them, known as blue sky laws, vary state-by-state for investors and broker-dealers.
That’s where OTC Markets’ Blue Sky Data Product comes in. The group has compiled a data feed that provides its subscribers the tools they need to evaluate blue sky compliance for more than 96,000 securities from some 50,000 issuers.
The product differentiates itself on both the unparalleled depth of coverage and timeliness of accurate data, the group said. By integrating these data feeds into their daily operations, broker-dealers can streamline compliance with state securities laws for secondary trading.
"Our blue sky data product will help broker-dealers and investment advisors automate a key compliance function for the growing OTC equities and debt markets," EVP of Market Data and Strategy Matthew Fuchs said in a statement. "Blue sky data can radically decrease the time and effort spent on state securities law compliance while opening up the world of OTC securities to Advisors, [separately managed] accounts and investors."
Automating the blue sky whitelisting process lets brokers do more business in securities that meet those laws and enables brokerage firms to block bad trades before they are entered, the group said. OTC Markets’ data reduces regulatory risks, lowers compliance costs and enables advisors, brokers and research analysts to recommend and cover OTC equities and fixed income.
The data itself is powered and delivered daily by OTC Markets' data sets and cloud-based architecture. Compliance professionals can also access historical data for each security through the group’s Canari web application.
To get a more granular view, users can also utilize Canari to access state-by-state compliance data. Additional dashboards provide a blue sky compliance map, summary level data by jurisdiction and time period selection.
The New York-headquartered OTC Markets Group operates the OTCQX Best Market, the OTCQB Venture Market, and the Pink Open Market for more than 11,000 US and global securities.
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