AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Publishes bid and offer prices from market makers for OTC securities.
- Provides transparency and pricing information in over-the-counter markets.
- Serves as a key resource for investors and brokers in OTC trading.
The National Quotation Bureau is a specialized service that collects and disseminates bid and offer quotations from market makers engaged in over the counter (OTC) securities transactions. Unlike securities traded on formal exchanges, OTC securities are traded directly between parties, often through dealers or brokers, and lack a centralized marketplace. The bureau fills this gap by publishing real-time or regularly updated quotes that help investors and brokers understand current market pricing and liquidity for these securities.
By aggregating bid and ask prices from various market makers, the National Quotation Bureau ensures a level of transparency and market efficiency that would otherwise be difficult to achieve in decentralized OTC markets. This information is crucial for traders looking to buy or sell OTC stocks, bonds, or other financial instruments, as it guides them on fair pricing and helps facilitate smoother transactions.
Moreover, the bureau’s published quotes serve as an important benchmark for valuing OTC securities and can influence investment decisions, risk assessments, and portfolio management strategies. The availability of this information also supports regulatory compliance by promoting market integrity and protecting investor interests.
Conclusion
The National Quotation Bureau plays a vital role in OTC markets by providing transparent and accessible pricing data. Its publication of bid and offer quotes enhances market fairness and efficiency, helping investors and brokers make informed decisions in an otherwise fragmented trading environment.