Criteria for US and international indexes include high standards of disclosure
OTC Markets Group has launched a series of indexes to measure the performance of ‘investor-friendly’ and transparent companies in the US and internationally.
The new OTCQX Composite Index, OTCQX US Index and OTCQX International Index select companies based on criteria including ‘high’ financial standards, English language disclosure in the US and sponsorship by a professional third-party adviser, OTC Markets Group says in a press release. International companies included must be listed on a qualified exchange. The indexes are meant to complement the company’s existing OTCM ADR Index and OTCQX30 Index.
‘Investors interested in tracking the performance of established, global and growth companies traded on our OTCQX marketplace now have a comprehensive solution with our new indexes,’ says Cromwell Coulson, president and CEO of OTC Markets Group. ‘These new indexes provide institutional asset managers with the benchmarks they need to make informed decisions and highlight OTCQX companies as a more attractive asset class for a wider range of investors.’
The company says in an email that it aims to license the indexes to institutions that want to use them in exchange-traded funds, structured products or other index-linked products.
The OTCQX Composite Index is an overall benchmark of the OTC marketplace and includes ADRs and ordinary shares of US and international equities. The OTCQX US Index exclusively tracks US companies and the OTCQX International Index includes 200 large-cap international companies such as Adidas, Heineken and Volkswagen as well as smaller companies the company says have high financial and disclosure standards.
OTC Markets Group maintains the OTCQX marketplace that includes companies considered top in compliance, financial standards and disclosure, the OTCQB marketplace for startups and other companies in development, and the OTC Pink marketplace for companies in distress.
