The OTC Bulletin Board is a regulated quotation service that displays real-time quotes, last sale prices, and volume information in over-the-counter (OTC) equity securities.  These securities include national, regional, and foreign equity issues, warrants, units, American Depositary Receipts (ADRs), and Direct Participation Programs (DPPs).

History
In June 1990, the OTCBB began operation, on a pilot basis, as part of important market structure reforms to provide transparency in the OTC equities market.  The Penny Stock Reform Act of 1990 mandated the U.S. Securities and Exchange Commission (SEC) to establish an electronic system that met the requirements of Section 17B of the Exchange Act. The system was designed to facilitate the widespread publication of quotation and last-sale information.  In April 1997, the SEC approved the operation of the OTCBB on a permanent basis with some modifications, and in May 1997, DPPs became eligible for quotation on the OTCBB.  In April 1998, all foreign securities and ADRs that are fully registered with the SEC became eligible for the display of real-time quotes, last-sale prices, and volume information on the OTCBB.  Beginning in July 1999, current financial information about all domestic companies that are quoted on the OTCBB was publicly available. Features of the OTCBB are:

• Access to more than 6,500 securities
• Includes more than 400 participating Market Makers
• Electronically transmits real-time quote, price, and volume information
• Displays indications of interest and prior-day trading activity in DPPs

Comparison of Nasdaq and OTCBB
The OTCBB is a quotation medium for subscribing members, not an issuer listing service, and should not be confused with Nasdaq. OTCBB securities are traded by a community of Market Makers that enter quotes and trade reports through a highly sophisticated, closed computer network. The OTCBB is unlike The Nasdaq Stock Market in that it:

• Does not impose listing standards
• Does not provide automated trade executions
• Does not maintain relationships with quoted issuers
• Does not have the same obligations for Market Makers

Feature or Requirement	OTCBB	Nasdaq
Minimum quantitative listing requirements	No	Yes
Listing and maintenance fees to issuers	No	Yes
Requirements to maintain quotation or listing	Yes	Yes
Real-time electronic quotes for domestic issues	Yes	Yes
Minimum Form 211 or listing processing time	3 days	6-8 weeks*

*A Form  211 is not required for listing on Nasdaq; however, the average time of approval for listing on Nasdaq is 6-8 weeks.

The OTCBB is distinct from the Pink Sheets. The "Pink Sheets"are operated by the National Quotation Bureau, LLC (NQB) and are a static paper quotation medium printed weekly and distributed to broker/dealers. An electronic version of the Pink Sheets is updated once a day and disseminated over market data vendor terminals. The Pink Sheets are not owned or operated by Nasdaq.

Registering to Make Markets in OTCBB Securities
The OTCBB operates as a dealer system.  As a result, all securities being quoted on the OTCBB must be sponsored by a participating Market Maker that registers the security by completing a Form 211 unless an exemption applies.  The Market Maker must submit a Form 211 to the NASD OTC Compliance Unit along with two copies of the required issuer information no less than three business days prior to publication of a quote on the OTC Bulletin Board. Once cleared, Nasdaq Market Data Integrity will notify the Market Maker that it has been registered in the security and may enter a quote.

Ineligible Securities
Every OTC security not currently quoted on the OTC Bulletin Board  is considered "ineligible" until a Market Maker submits a Form 211or a 15c2-11 Exemption Form.  After clearance, the security is granted "eligible" status.

Eligible Securities
If a security has eligible status, it means one or more Market Makers has received clearance to quote the issue on the OTC Bulletin Board within the last 30 days.  Any other participating Market Maker that wishes to quote the issue must also submit a completed Form 211. During the "eligible" period, a frequency-of-quotation test is administered. The test is described below.  Until the test is satisfied, all Market Makers must continue to submit a completed Form 211.

Issuer Information
Only Market Makers can apply to quote securities on this service.  Issuers may contact an authorized OTCBB Market Maker for sponsorship of a security on the OTCBB.  The OTCBB does not charge issuers a fee for being quoted on the service.  NASD Rules prohibit Market Makers from accepting any remuneration in return for quoting issuers’ securities on the OTCBB or any similar medium.