The Bank of New York has been approved by OTC securities software provider Pink Sheets, as an American depositary receipt (ADR) Principal American Liaison (PAL) for International OTCQX-listed companies. The Bank of New York can serve in the PAL role for its international clients with sponsored Level I ADR programs wishing to join the International OTCQX platform.
The International OTCQX is a new Pink Sheets market tier that provides a trading, quotation and disclosure venue for international companies whose securities are listed on a qualifying non-US exchange and are traded in the US over-the counter (OTC) markets. International OTCQX, which is to launch on 5 March and is an alternative to traditional exchanges, distinguishes the securities of qualifying non-US issuers from the thousands of securities traded on OTC.
Every ADR issuer participating in the OTCQX program is required to appoint a US PAL to perform the role described in the OTCQX rules. In addition to the role requirements under the rules, a depositary PAL may help participating issuers obtain a market maker, steer them to appropriate third-party vendors for assistance with OTCQX program guidelines and facilitate communication with the US investment community.
“The Bank of New York provided us with valuable input on ADRs as we developed the International OTCQX program, and we look forward to continuing our relationship,” says Cromwell Coulson, the chairman and chief executive officer of Pink Sheets. “We are delighted that our efforts are coming to fruition as the program will help the Bank’s clients elevate the visibility of their Level I ADRs in the U.S. investor community.”
“We consistently look for ways to help clients’ ADRs gain greater visibility and liquidity, and the OTCQX program offers just that,” adds Christopher Sturdy, the executive vice president and head of The Bank of New York’s Depositary Receipt Division. “For our Level I clients, the program is a unique venue for enhancing the status of their ADRs in the US, and we are pleased to be the only depositary bank to date approved as a PAL.”