Retail Fx Archives - The Industry Spread

Gaitame Reverses the January Trend, Reports Weakest Transactional Volumes Since 2017

March 12, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: Brokers, Capital Markets, financial institutions, financial services, Forex, Gaitame, Japanese, Kabu, MUFJ, Retail Fx, trading platform

Japanese forex brokerage giant, Gaitame published its second monthly trading volumes data, reporting weakest transactional volumes since 2017. Despite a strong surge in trading volume in January, the brokerage house reported reversal in trend.

In February, the total number of accounts opened was 2828 accounts, bringing in total to 482,866 by the end of the month. Compared to the previous month, the increase is marginal at 0.6 per cent. In January, the brokerage opened a total 3,291 new accounts to reach 480,038 which is 0.7 per cent higher compared to the December month.

The transactional volumes during the month were ¥145.7 billion ($1.3 billion), which is 46.5 per cent lower compared to transactional volume in January at ¥272.2 billion. It is also lowest compared to more than a year from December 2017. The January’s transactional volume is 62.29 per cent more than that achieved in December 2018, and this is also the highest monthly transactional volume to be recorded since February 2016.

On yearly timeframe, the February 2019 volumes are 43 per cent lower from at ¥255.8 billion in February 2018. Although steep decline reported in transactional volume, the deposit amount managed to increase to ¥109.95 billion in February 2019, up from ¥109.5 billion in January ( a slight increase of 0.4 per cent).

Kabu Reports Slight Increase in Monthly Revenue in February

Another Japanese online securities broker, Kabu, the subsidiary of MUFJ has managed to record a slight uptick in revenue in February 2019. During the month, the revenue generated from brokerage commission came in at ¥554 million ($4.98 million), which is 20.2 per cent higher compared to the previous month from ¥461 million.

In the brokerage commission, the stock and equity trading contributed the most. The net operating revenue in the month of February 2019 came in at ¥1.269 billion, which is 3.5 per cent or ¥43 million higher compared to the previous month.

Market making, the group’s largest revenue making source also managed to post a healthy uptick of 9.1 per cent to ¥649 million from ¥595 million in January. Trading gains during the month came in at ¥69 million, up by 56.8 per cent compared to the previous month.

Brazil’s B3 Exchange Publishes Fourth Quarter and Full Year 2018 Financial Results, Reports Strong Volume and Revenue Growth

February 22, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: B3, Brasil Bolsa Balcão S.A, brokerage, Capital Markets, Financial markets, financial services, FX rates, Retail Fx, RPC, trading platform

The Brasil Bolsa Balcão S.A, commonly known as B3 and is one of the world’s largest financial market infrastructure provider by market value has published its fourth quarter and full year 2018 financial results.

The year, 2018 marked the first full year result for B3 and has managed to achieve a strong financial performance during the period. The B3 exchange came into existence after the merger of three separate exchanges, São Paulo Stock Exchange (Bovespa), the Brazilian Mercantile and Futures Exchange (BM&F) and CETIP. The exchange provides trading in all financial instruments including FX, stock indices, interest rates, commodities and more.

The full-year revenue for B3 is reported at R$5.352 billion ($1.42 billion) in all business segment, representing an increase of 20.6 per cent year-on-year. The BM&F segment during the period generated an average daily volume of 3.7 million contracts in 2018, a growth of 20.8 per cent compared to 2017.

The BM&F segment has the highest trading volume of contracts in Interest rate Brazilian real (BRL), with more than 1.9 million contracts, representing a rise of 2.3 per cent year-on-year. The strong volumes were mainly contributed due to the volatility and uncertainty in the market fueled by a reduction in interest rates in 2017 and the Brazilian elections in 2018.

The Interest Rates in USD contracts volume for FX Rates has been boosted by 31.6 per cent, due to the demand for hedging against exchange rate variations. The average daily volumes for FX Rates in 2018 were 690,100 contracts, an increase of 27.4 per cent from 541,800 contracts in 2017.

The revenue per contract (RPC) also managed to climb higher by 7.3 per cent year-on-year for the BM&F segment in 2018. Higher revenue realisation was mainly driven by 17.1 per cent appreciation in USD against BRL. More specifically, the average RPC for FX rates was R$3,355 ($890.50) in 2018 and RPC for interest rates in USD also grew by 18.6 per cent year-on-year.

In the fourth quarter of 2018, the average daily volume in the derivatives market (BM&F segment), came in at 3.7 million contracts, reporting a growth of 15.6 per cent compared to the final quarter of 2017. The growth in the final quarter was mainly driven by 41.7 per cent increase in the volumes of Interest rates in USD and 26.7 per cent year-on-year growth in FX rates. The trading volume for stock indices also doubled during the final quarter.

Digital Vega Adds Two Veteran Executives to Institutional FX Options Business

February 18, 2019 by Ricardo Esteves Leave a Comment Filed Under: Industry News Tagged: Digital Vega, Financial markets, foreign exchange, Fx Option, FX trading, OTC derivatives, Retail Fx, trading platform

Digital Vega has appointed two senior appointments in order to support its expanded product development strategy for its leading FX Options e-trading platform. The firm, which will shortly add two new salespeople, has recently hired two new senior developers.

The provider of FX Options trading solutions named industry veteran and ex-Tullet Prebon executive Simon “Benny” Lewis as Head of Interdealer Solutions. “Benny” spent 20 years at Tullett Prebon, building a market leading exotic options desk from scratch, and ultimately being appointed Global Head of FX Options, until retiring in 2016.

“Transparency, regulation, and efficiency are driving the evolution of Capital Markets, and trading firms are increasingly looking to trade more of their FX options online as a result. Digital Vega has already built a strong business and reputation in the Dealer to Client market, and I am really pleased to be able to lead the new Interdealer initiative,” Simon Lewis commented on his appointment.

Digital Vega has also appointed Romain Camus as Head of Exotic Options. Camus, who spent 15 years working in foreign exchange in addition to roles in both commodities and equities, joins the company from VTB where he was Executive Director, Head of Foreign Exchange Structuring. His vast career includes roles as Structurer at Goldman Sachs and Deutsche Bank.

“Joining Digital Vega was an obvious decision for me, as it has an innovative set of products and an impressive client list, which provides a tremendous foundation of success to build upon. Building and delivering an Exotics and Wealth Management platform will capture the growing volumes in this asset class and satisfy client demand for the increased use of electronic trading solutions,” said Romain Camus.

Mark Suter, Executive Chairman and Co-Founder, Digital Vega, said:

“We are very pleased to welcome Simon and Romain to our growing team. They bring extensive domain knowledge, many years of experience working in our core markets, and valuable contacts that will help to fuel our development. Digital Vega is already recognised as the leading FX platform for trading vanilla options electronically, and our aim is to build on this success by adding new clients, extending our product coverage to Exotics and Wealth Management Solutions, and launching a unique new solution for the Interdealer market.”

Digital Vega is a leading provider of OTC FX option trading tools to the Institutional FX market. Its offering includes the Medusa FX Options trading platform which has gained attention as more OTC and derivatives markets migrate to electronic trading models, driven either by regulations or client demand.

Australian Securities Exchange Releases its Preliminary Financial Results for H1FY2019, Reporting Strong Growth During the Period

February 14, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: ASX, australian securities exchange, brokerage, Brokers, Capital Markets, economy, financial results, financial stability, OTC markets, Retail Fx, trading platform

Australian Securities Exchange (ASX) on Wednesday announced its preliminary financial results for the first half of fiscal 2019 on a group level. The primary security exchange of the country has witnessed some strong growth during the period, with a large uptick in market activity across all of its businesses.

In the first half of fiscal 2019, ending in December 2018, the exchange achieved revenue of AU$424.7 million ($302.3 million), which is AU$26 million or 3.8 per cent higher on a year-on-year basis. On a like-for-like accounting basis, it is up by 6.5 per cent when compared to the first half of fiscal 2018.

The solid performance was recorded across all the business segments with strong volumes in derivatives and over-the-count (OTC) markets, Astraclear and collateral management activity.

Revenue for the derivative and OTC markets increased by 6.3 per cent, and futures volume increased by 5.3 per cent on a year-on-year basis. This resulted in an increase in total revenue from trading services on the exchange by 8.6 per cent on a year-on-year basis. The cash market trading revenue was higher by 15.2 per cent on a year-on-year basis.

Commenting on the results, Dominic Stevens, ASX Managing Director and CEO, said:

“The result reflects the balanced approach we take to investing in the integrity of our core businesses and pursuing growth initiatives. It has allowed ASX to deliver another attractive return to shareholders, with our interim dividend rising 6.7% to 114.4 cents per share.”

“The key performance drivers of our businesses were a 38% increase in capital raised to $62 billion, underpinned by the demerger and listing of Coles; a greater than 5% rise in the number of futures contracts traded, particularly in SPI equity futures; an increase of more than 15% in cash market trading amid market volatility; and the continued expansion in the number and variety of financial market participants in ASX’s Australian Liquidity Centre (ALC), spurring demand for our technical and information services.”

Further, ASX is also eyeing growth from new data analytics platform that offers its clients access to data science and machine learning capabilities to solve complex problems. The platform has been made live and initially will only be applied for internal use cases before being made available to selected customers.

Stevens further added:

“The investment here will enable ASX to create analytics solutions for its customers. It will support access to data science and machine learning capabilities and offer a broad range of ASX and non-ASX datasets. The initiative will allow those who contribute data and analytics, to create in fact their own new revenue streams.”

Tokyo Financial Exchange Reports Strong Volumes in the First Month of Year 2019 with Total Volume Increasing by 17.4%

February 1, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: AUD/JPY, brokerage, Brokers, EUR-USD, financial services, FX, FX trading, Retail Fx, TFX, Tokyo Financial Exchange, trading platform

After ending the year 2018 with mixed results, Tokyo Financial Exchange (TFX) on Friday has released its January Fx volume figures, reporting strong growth in the first month of the year.

The combined trading volume of all TFX products during the month came in at 3,318,379 contracts with average daily volumes at 151,684 contracts, which is 5.5 per cent higher when measured against the December 2018 metrics and 3.8 per cent higher when compared to January of 2018.

Breaking down the total volume figures, the total trading volume for the foreign exchange daily futures contract (Click365) is 2,831,223 contracts, with an average daily trading volume of 128,693 contracts.

The total interest rate futures contract (three-month Euro-Yen) traded in January 2018 was 117,834 contracts with average daily volumes coming in at 6,202 contracts. When compared to the previous month, the total trading volume is 10.7 per cent lower from 131,931 contracts in December 2018 but is 21.5 per cent higher compared to January 2018 volumes.

The trading volumes for FX daily futures contracts jumped 17.4 per cent month-on-month, and on a yearly comparison, it is 14 per cent higher from January 2018.

The Euro/USD currency pair witnessed the biggest month on month increase of 78.8 per cent with 71,107 contracts during the month, and the AUD/JPY currency pair recorded the biggest yearly gain of 149.4 per cent.

The total trading volume in the equity index daily futures contracts (Click Kabu 365) was 369,322 contracts, with average daily trading volume figures at 16,789 contracts, which is down by 38.6 per cent on monthly comparison and 40.2 per cent lower on yearly comparison.

Senior Level Strategic Appointments at Society Financial and Offshore Broker IX Securities

January 21, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: Bitcoin, Blockchain, Brokers, Capital Markets, Cryptocurrencies, Cryptocurrency exchange, Fixi PLC, IX Security, Perfect Money, Retail Fx, Society Financial, trading platform, Western Union

Society Financial Appoints Veteran FX Executive Tom Tragett as its New Chief Market Analyst

UK-FCA regulated agency, Society Financial has appointed veteran FX executive Tom Tragett as its new Chief Market Analyst. Mr. Tragett will help the company to augment the broker’s market information capabilities specifically in relation to clients while helping to generate a diverse blend of market reports, updates and analysis of overall company clientele.

Mr. Tragett has over three decades of experience in the FX brokerage space and in other financial services sector. He has spent a major part of his career as a currency strategist, consultant, and premier researcher. He traded FX, commodities, futures, options, and indices for own account as well as advised private and retail clients on FX trading strategies.

He has joined Society Financial from Fixi Plc in December 2018 which ceased its operation following consultation with the FCA. Earlier, he has worked with Fleet Street Publications for almost ten years and most recently he has served as the group’s editor of ‘Currency Wars Alert’ where he was advising retail customers on G10 FX trading strategies. Other companies where he held roles are ODL Securities, RZB London. In the earlier part of his career, Mr. Tragett has worked as Chief FX Trader at Asahi Bank London from 1998 to 2001, managing a small team of six traders and was also tasked with overseeing FX sales function.

Peter Karsten has been Appointed CEO of Offshore Broker IX Securities

A new FX and CFD broker called IX Securities has appointed Peter Karsten as its CEO. IX Securities is based in the Bahamas and is regulated by the Securities Commission of The Bahamas. The brokerage is registered in Nassau and is a part of the growing number of new brokerage operations that entered offshore.

The change was reflected in Mr. Karsten’s LinkedIn profile. Mr. Karsten has a deep experience of managing the FX brokerage affairs and was CEO of BDSwiss between February 2014 and November 2015. He then joined Infinox Capital as Commercial Director and London Capital Group as a Sales Consultant.

Offshore brokers mainly face the challenges of payments, and IX Security is currently managing its affairs with bank wires, 2pay4you, Western Union, Vload, Bitcoin, Fasapay and Perfect Money.

cTrader Platform to Feature Crypto on New White Label Solution

January 19, 2019 by Ricardo Esteves Leave a Comment Filed Under: Company News, Industry News Tagged: CFD brokers, crypto, cryptocurrency, cTrader Platform, forex brokerage, James Glyde, Match-Trade Technologies, Michał Karczewski, Retail Fx, spot forex, Spotware Systems, trading platform, white label

The cTrader platform will feature additional tools such as extended Client office or cryptocurrency features on the white label solution.

Spotware Systems, the creator of leading retail FX trading platform cTrader, has partnered with FX and Crypto technology provider Match-Trade Technologies to launch a new breed of turnkey White Label solutions.

Forex and Crypto trading brokers everywhere will benefit from the alignment between Spotware’s cTrader platform and Match-Trade’s complementary high-tech services and technical support in the trading realm. The trading platform for Forex and CFD brokers, which is already packed with a full range of features, will feature additional tools such as extended Client office or cryptocurrency features on the white label solution.

James Glyde, Chief Commercial Officer at Spotware Systems

Match-Trade is a California-based forex and cryptocurrency technology provider that delivers turnkey matching engine solutions to all forex market participants looking to access the retail and institutional spot forex markets. The firm targets forex providers, such as Brokers, Prime Brokers, and other Liquidity Providers who wish to enter the independent ECN and Crypto market.

Optimal for brokers looking for intelligent technology that does not require a large investment, the solution offered by the partnership between Spotware and Match-Trade will feature integrated Client Office (expanded with CRM feature) appreciated by many brokers, crypto payment gateway or ultra-fast data feeds as well as seamless integration with any Liquidity Provider.

The solution is being marketed as a high-quality service for a relatively low entry threshold, affordable even for start-up brokers. Spotware and Match-Trade will also ensure that the entire set up process will run seamlessly so that brokers can focus on business development.

James Glyde, Chief Commercial Officer at Spotware Systems, commented:

Michał Karczewski, Head of Business Operations at Match-Trade Technologies

”Spotware has been integrated with Match-Trade’s technology for years. We are pleased that they have decided to extend our cooperation and include cTrader in their product offering alongside other well-known trading platforms. We see Match-Trade as an important sales support for us because of its high-quality complementary services that further enrich our core-offering. Also, their experts provide invaluable support for clients, both in a technical and consulting capacity to help them choose the optimal solution tailored to their needs. I believe we have chosen a trusted partner who will not only provide the best experience of the cTrader platform but also support the business development of their clients, just as we do.”

Michał Karczewski, Head of Business Operations at Match-Trade Technologies, said:

“To address the needs of the clients seeking a solution designed for web access we have decided to extend our portfolio of services with the cTrader White Label solution. Spotware is a reputable company that offers proven solutions of the highest quality and the industry recognizes cTrader as one of the best trading platforms available on the market. For those who are looking to start their Forex brokerage, we have created a unique and complex trading infrastructure with optimal start-up costs.”

Equiti Capital Reports Solid Turnover for Fiscal 2018, Turnover Increased by 285% to £17.95 Million

January 9, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: brokerage, Brokers, Capital Markets, economy, EQUITI GROUP, Financial markets, FOREX.com, FX trading, investment, Retail Fx, trading platform

UK-based FX and CFD broker, Equiti Capital UK Ltd., previously known as Divisa UK has ended fiscal 2018 with a bullish note, as it managed to quadruple its turnover compared to 2017. The group disclosed its fiscal 2018 annual report and financial statement on Tuesday.

The group maintains a financial year of April-March, and in the 12 months period ended March 31, 2018, the brokerage has reported a turnover of £17.95 million. It is an increase of 285 per cent compared to the company’s 2017 fiscal year, in which it achieved a turnover of £4.67 million.

With the increased turnover, the company’s cost of sales climbed more than fivefold from £1.17 million in 2017 to £7.37 million in 2018, an increase of 529 per cent. The gross profit during the year came in at £10.58 million, an increase of 203 per cent year-on-year from £3.5 million in 2017.

Despite achieving strong revenue growth, total comprehensive income after deducting the tax component came in at negative £607,858, compared to the profit of £60,613 in 2017.

Commenting on the financial results, Brian Myers, the CEO of Equiti Capital said:

“2018 was a hugely positive period of growth and investment for Equiti Capital UK. The circa 400% increase in turnover from 2017 was the start of the return from significant investments made in key areas throughout last year.

“The talent we were able to acquire in 2018, plus the foundations that were laid in operations and product, has put us in a fantastic position to continue our strong trajectory in our group Brokerage and Retail business lines.”

During the year, the firm has secured 100 per cent regulatory approvals for its acquisition. The company in its statement has also shown the confidence of successfully navigating through the new regulatory regime with EU and UK and will able to achieve distinct competitive advantage in the next few years.

Gain Capital’s FOREX.com Posts December 2018 Trading Volume Figures

Gain Capital’s retail forex trading arm, FOREX.com has reported its December 2018 operational metrics on Tuesday. In the last month, the firm reported a 17.7 per cent increase in trading volumes compared to December 2017.

But, on a monthly basis, the figure is 7 per cent lower to $192.6 billion, when compared to the November figure. The average daily volume during the month increased by 2.1 per cent compared to the previous month.

Despite, upbeat trading volume figures, the number of active clients declined during the month by almost 7 per cent on a yearly basis to 123,171 active traders. The Futures trading were sharply higher during the month, an increase of 24 per cent when compared to December 2017 figures. The clients of GAIN Capital traded 641,094 futures contracts in full December month, a decrease of 2 per cent on a month-on-month basis.

Japanese Yen Sharply Higher Against USD

January 3, 2019 by Nikolas Papas Leave a Comment Filed Under: Market News - European Open Tagged: Brexit, brokerage, Brokers, Capital Markets, economy, EUR-USD, European Markets, financial services, flash crash, monetary policy, Retail Fx, trading, trading platform

A flash crash in the currency market sent the USDJPY down to 106.55, and AUDUSD down to 0.6775 in just five minutes, hitting 10-year lows against the yen and the dollar. The flash crash was blamed in part on algorithmic trading during an illiquid market. Japanese traders were on holiday, while the United States market had closed for the day.

Shares fell in Singapore STI, and the Shanghai Composite index was flat, while Hong Kong’s Hang Seng was down 0.26%. The Australian benchmark S&P/ASX200 index closed higher 75.6 points, or 1.36 per cent, to 5,633.4. The broader All Ordinaries was up 69 points, or 1.23 per cent to 5,694.6. Japan’s markets were closed.

European shares fell in early European session as Apple lowered its first-quarter revenue guidance to $84 billion, down from the $89 billion to $93 billion that had previously been forecasted. Dax in Frankfurt gives up 0.68% to 10507, CAC40 down 0.60 to 4653 and in London FTSE fall 0.68%. German Economy Minister Peter Altmaier said in an interview published Thursday that the U.K.’s withdrawal from the European Union poses an economic risk, although he added that he expected growth in Germany to continue.

On the Lookout: Looking ahead, the US ISM manufacturing index, ADP employment report, Challenger job cuts, construction spending, motor vehicle sales and weekly jobless claims data will be released later today.

Analysts at TD Securities suggest that the US ISM Manufacturing is expected to edge lower in December, and they are looking for the index to decline to a below-consensus 57.3 from 59.3 (market: 58.0).

“ADP Employment for December will be published at 8:15 ET with the market looking for job growth to edge lower to 180k while December auto sales will round out the data flow, with consensus looking for sales to slow to a 17.2m annualized rate.”

Trading Perspective: A flight to safety following the series of negative releases since the turn of the year saw the rush into the yen early morning. The USDJPY now seems to have formed a temporary base near the 106.90 level. The yen continued benefitting from the global flight to safety amid heightened worries about the global growth, further fueled by a rare revenue warning from Apple.

USDJPY recovered some of its early lost ground to over nine-month lows, albeit struggled to make it back above the 108.00 round figure mark. Technical indicators on hourly charts have just started moving away from highly oversold zone but remain well within the bearish territory. Bears will lose control only if the pair manages to regain 109.71, yesterdays daily high, a figure far away from current levels.

EURUSD traded deeply into the red territory on Wednesday in thin liquidity, charting at the same time a bearish engulfing candle and opening the door for further loses in the short-term horizon. In the hourly chart, yesterday’s sharp selloff halted just ahead of the critical support at 1.1300 level. In late Asia session, the pair found fresh buyers and is now posting some decent gains in the 1.1372/78 band. Despite the mild rebound so far, the pair is poised to remain under pressure, as bears took control, and a break above the 50-day moving average at 1.1378 needed to attract some buyers.

GBPUSD tries to recover from the flash crash in the Asian session at 1.2439. The technical picture just got worst today as the price hits two weeks low and is trading below the majors daily and hourly moving averages. Karen Jones, analyst at Commerzbank, points out that GBP/USD pair’s correction higher baulked at the 55-day MA at 1.2802 and this resistance is reinforced by the 2018-2019 resistance line at 1.2843. The emphatic rejection of the market has seen an erosion of 1.2479/77 – the lows charted in mid-December. We have a new low of 1.2444; the move looks overstretched and has not been confirmed by the daily RSI, and we would allow for some near-term consolidation. Below 1.2444 targets the 78.6% retracement at 1.2109.”

Gold still attracts buyer’s interest and is trading close to 6-1/2 month tops, set earlier today. The precious metal built on its recent positive momentum and was off to a good start in 2019. The ongoing up-move to the highest level since mid-June remained supported by growing worries about a sharp global economic slowdown, which propelled demand for perceived safe-haven assets, including gold.

OTC Markets Group Adds Arkansan Bank to OTCQX Market

December 29, 2018 by Ricardo Esteves Leave a Comment Filed Under: Industry News Tagged: brokerage, Brokers, Capital Markets, economy, Financial markets, foreign exchange, OTC markets, OTCQX, Retail Fx, risk management, SEC, trading, trading platform

OTC Markets Group, an American financial market providing price and liquidity information for almost 10,000 over-the-counter securities, has added White River Bancshares Company (OTCQX: WRIV) to trade on the OTCQX® Best Market.

Jason Paltrowitz, Executive Vice President of OTC Markets Group, said:”We are pleased to welcome White River Bancshares Company as the first community bank from Arkansas to join our OTCQX Best Market. With a 12-year history as a private community bank, trading on the OTCQX BestMarket will provide White River Bancshares’s new and existing
shareholders with a public market for efficient trading and price transparency.”

The OTCQX market includes both multinational companies seeking access to U.S. investors and domestic growth companies. White River had to undergo a qualitative review by OTC Markets Group before being listed as they are not required to be registered with or reporting to the SEC.

OTC Markets Groups requires U.S. companies to be ongoing operations while foreign issuers must meet the requirements of qualified foreign exchanges. Additionally, every issuer must be sponsored by approved third-party investment banks or law firms, called OTCQX Sponsors.

Greg Lee, Chairman of White River Bancshares Company, commented:

“We’re happy to trade on the OTCQX Market to help tell our story and provide White River Bancshares Company shareholders and prospective investors with a streamlined stock buy-sell trade process. The decision to move WRIV stock to OTCQX, a premium public market, perfectly aligns with our Board’s 2018 directive and Management’s commitment to improve liquidity and to increased franchise value.”

The SEC views many of the lower-tier companies traded on OTC Markets as “among the most risky investments” and advises potential investors to heavily research the companies in which they plan to invest.