OTC Bulletin Board
The OTC Bulletin Board (OTCBB) was an electronic quotation system operated by the Financial Industry Regulatory Authority (FINRA) that provided real-time quotes, last-sale prices, and volume information for over-the-counter equity securities. The platform served as a venue for broker-dealers to post bids and offers for securities of companies that filed current financial reports with the U.S. Securities and Exchange Commission (SEC) or another federal regulator but were not listed on a national stock exchange. The OTCBB played a key role in improving transparency and accessibility in the OTC market by allowing investors to view up-to-date pricing and trading information. However, as trading activity increasingly shifted to more advanced electronic marketplaces, such as the OTC Markets Group platforms, FINRA announced plans to wind down the OTCBB. The service was officially discontinued on November 8, 2021, marking the end of an era in U.S. OTC securities quotation.
The Over-the-Counter Bulletin Board (OTCBB) was an electronic quotation system that provided real-time quotes, last-sale prices, and trading volume information for securities traded over the counter.
Established in 1990 following the Penny Stock Reform Act, the OTCBB was created to fulfill the SEC’s mandate to develop an electronic quotation system for securities that could not meet the listing standards of major exchanges such as the NYSE or NASDAQ.
While both the OTCBB and the Pink Sheets (now the OTC Markets Group) served as quotation services for OTC securities, the OTCBB was operated by FINRA, whereas the Pink Sheets were managed by a private company. In some cases, companies could be quoted on both platforms simultaneously.
KEY FEATURES
Real-Time Market Data – Provided bid/ask quotes, last-sale prices, and volume information, enhancing transparency in OTC trading.
Broker-Dealer Participation – Only registered broker-dealers and market makers that subscribed to the service could post or display quotations for eligible securities.
Eligibility Requirements – Issuers typically did not meet the listing criteria of major exchanges but were required to maintain current financial filings with the SEC or another regulator.
Lower Regulatory Standards – The OTCBB operated under less stringent governance and disclosure rules, which often meant higher investment risk compared to exchange-listed securities.
Platform for Delisted or Smaller Companies – Served as a venue for companies that had been delisted or were too small to qualify for major exchanges, providing continued access to public markets.