• Brad Furber

Accessing US Capital Markets for European Issuers

Updated: Oct 24



Question

Can listed European companies access the world’s biggest capital markets in the USA without registering with the SEC?


Answer

Yes, your European listed shares can be quoted, purchased and sold to institutional and retail investors in America without the hassle, expense or liability of registering with the US Securities and Exchange Commission (SEC). It’s done through the OTC Market in New York.


Short Version

If your company is listed on a qualified European (or other non-US) stock exchange, you can be sponsored onto the OTC Market, the third largest stock market in the USA, and make your stock available for purchase or sale by American institutional and retail investors.


More than 600 companies from 30+ countries cross-trade their securities on OTC. They include Adidas AG, BASF SE, Hugo Boss AG, Deutsche Lufthansa AG, Deutsche Telekom AG, Roche Holding Ltd, Zurich Insurance Group Ltd, BNP Paribas, Akzel Nobel, Repsol, AXA Financial Group and Experian.


Key Benefits

The key benefits include:

  • increased liquidity in your home market (an average of +26%) and in the US market (an average of +67%)

  • creation of additional basis point value, and

  • a decrease in spreads by an average of 5% for international companies.


Does your Company Qualify?

To book a meeting to evaluate if you company qualifies for OTCQX or OTCQB on OTC Markets reach out to Aery Advisors or Carsted Rosenberg by scheduling an exploratory call:

Podcast

Listen to the podcast to learn more about how to bypass the SEC “front door” and go through the “side door” via an OTC Market sponsorship.


About Aery Advisors

Aery Advisors is boutique (non-legal) creator and developer of programs and services focused on helping start-up, emerging growth and public company founders, funders and management teams access pools of capital to launch, grow and innovate. Aery Advisors is working closely with both Carsted Rosenberg and the OTC Markets Group to market and vet appropriate public company candidates who may be interested in engaging a pre-approved Sponsor to submit a letter of introduction to the OTC Markets Group.


About OTC Markets Group Inc.

OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX® Best Market, OTCQB® Venture Market and Pink® Open Market. Our OTC Link® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets. OTC Link ATS, OTC Link ECN and OTC Link NQB are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC.


About Carsted Rosenberg

Carsted Rosenberg has been approved by the OTC Markets Group to act as an OTC Sponsor for companies to be quoted on the OTCQX and OTCQB markets. A foreign issuer seeking to qualify for OTCQX needs to have a letter of introduction from an approved OTCQX Sponsor. An OTCQX Sponsor, usually an investment bank or a law firm, will assist you with your application and guide you through the process together with the OTC Markets Group to ensure a successful and U.S. compliant result. Carsted Rosenberg is a specialist international law firm with a focus on cross-border banking & finance, capital markets, mergers & acquisitions and corporate & commercial matters. Our clients rely on us for pragmatic advice and transactional excellence. We specialise in matters that require transactional expertise, considerable cross-border experience and a high degree of proficiency and efficiency.


Further Information

For further information on the advantages of an OTC Quotation on OTCQX for European companies, please contact Brad Furber or Michael Carsted Rosenberg or Andreas Tamasauskas at Carsted Rosenberg. To learn more about the OTCQX Market, contact VP, International Corporate Services Joe Coveney at jcoveney@otcmarkets.com.