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OTC Markets Group: 10 Cents Of Growing Free Cash Flow Per Dollar


OTC Markets Group (OTCQX:OTCM) is the dominant company behind the over-the-counter (OTC) market in the United States. The company runs an asset-light business with high margins, recurring revenue, and strong returns on its assets.

Over-the-counter (OTC) trading is done directly between two parties, without the involvement of any exchange. OTCM offers an inter-dealer quotation and trading system (OTC Link ATS), which connects the independent broker-dealers. OTCM has also established itself as the primary provider of OTC equity market data and has strong relationships with Bloomberg, Interactive Data, Factset, and other major data redistributors.

The only real competitor, OTCBB, seems to be in a terminal decline. The number of the securities quoted and the broker-dealers using that system...

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