OTC Markets: How and why ASX firms can list in the US

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OTC Markets executive vice president Jason Paltrowitz talked with Proactive about how international companies, particularly those listed on the ASX, can gain streamlined access to US investors by listing on OTC Markets. Paltrowitz explained that many investors in the US face structural barriers to directly trading in foreign markets like Australia, London, or Paris. OTC Markets offers a solution by acting as a secondary trading venue for international companies, enabling their shares to be traded in US dollars during US market hours. “Companies need to make those shares available in the US during US trading hours in the US dollar on a regulated market, so that investors can access those equities through their broker of choice,” he said. The discussion also covered the structure of the different market tiers: the OTCQX “best market,” and OTCQB “venture market,” which cater to companies with varying levels of maturity and financial standards. More than 80 ASX companies have already tapped into these markets. Paltrowitz also spoke about the “List Local, Trade Global” strategy, which promotes companies maintaining primary listings in their home countries while tapping into the liquidity and capital of the US. He stressed that listing on OTC does not require SEC reporting, reconciliation to US GAAP, or Sarbanes-Oxley compliance, making it an efficient route for cross-border trading exposure. He highlighted increased investor interest, with dollar volume in Asian equities rising 77% and European equities 72% in Q1 year-on-year. New developments like overnight trading and the upcoming OTC Sight platform are also enhancing access and transparency for both issuers and investors.