29 Oct FINRA Plans OTCBB Shutdown

There was a time in the 2000s during the boom of Chinese companies’ entering the US public markets when executives visiting from the PRC knew only one thing in English: “OTCBB.” Officially known as the OTC Bulletin Board and owned and operated by the Financial Industry Regulatory Authority (FINRA), for decades it was the place for over-the-counter stocks to trade. It was pretty much this or the Pink Sheets until very recently.

Cromwell Coulson and his team at OTC Markets, owner of the Pink Sheets, OTCQB and OTCQX, have successfully defeated the BB. By offering a stronger, more supportive platform with much better execution and reliability, OTC Markets moved thousands of companies from the BB to their sites. The QB in particular, with its requirement to be fully SEC reporting, has effectively crushed the BB.

As a result, starting with a very quiet filing with the SEC back in June and a less quiet one earlier this month, FINRA has announced it is going to shut down the OTCBB. This following their failed attempt to sell the BB to Rodman & Renshaw a few years ago. FINRA also announced it is going to add regulatory burdens to the OTC Markets platforms (sour grapes maybe?).

Frankly, the BB was already brain dead, it makes sense for FINRA to pull the plug.