OTC Markets Group, has taken the first step toward becoming a regulated entity, Traders Magazine's Peter Chapman reports.  OTC Markets, fka as Pink OTC Markets, ultimately plans to transform itself into an alternative trading system, or ATS.  But first, the company registered  its OTC Link subsidiary as a broker-dealer with the SEC.  Later this year, the company intends to register OTC Link
as an ATS and a member of FINRA.

These moves are predicated on the competition between FINRA and OTC Markets for OTC dealer quotations.  Cromwell Coulson, OTC Market President and CEO said:  "The SEC asked us to register our interdealer quotation system as an ATS.  So our operations will have their direct regulatory oversight."

        FINRA's Efforts Countered by OTC Markets.   In 2009, FINRA sought permission from the SEC to require market makers to submit their quotes to FINRA - so that it could transmit a consolidated quote feed to brokers.  OTC Markets, which already consolidates and disseminates quotes from the OTCBB with its own, fought back.   And, with OTC Market's plan to register its OTC Link subsidiary as an ATS, it might be easier for the SEC to reject FINRA's proposal.  ATSs largely include exchange-like entities such as ECNS and dark pools.  While they're technically broker-dealers, they share many of the functions of a regulated stock exchange.

For further details, go to:   [Traders Mag, 5/3/11]