First Graphene Ltd (ASX:FGR, OTCQB:FGPHF) has secured approval from the Depository Trust Company (DTC) that will allow real-time electronic clearing and settlement for its OTCQB-listed common shares in the United States.
The company earned a secondary compliance listing on the OTCQB market with the ticker code FGPHF in April 2021.
The OTCQB is a marketplace for early-stage and developing US and international companies and replaced the Financial Industry Regulatory Authority (FINRA)-operated OTC Bulletin Board as the main market for trading OTC securities that report to a US regulator.
Opening doors to new investors
FGR CEO and managing director Michael Bell said: "First Graphene has been subject to increasing interest from US-based investors over the last 12-18 months and our listing on the OTCQB has provided institutional and retail investors with easier access to trade in the company's shares.
"With our recent substantial progress in the cement and concrete segment, gaining DTC eligibility was the logical next step, which now allows FGR shares to be traded and settled electronically.
“Existing investors will benefit from greater liquidity and execution speeds while opening the door to new investors that may have been previously restricted from transacting in the company's shares."
FGR recently made an application to the DTC to allow electronic clearing and settlement for the company's shares trading on the OTC market."
Accelerates settlement
The DTC, a subsidiary of the Depository Trust & Clearing Corporation (DTCC), manages the electronic clearing and settlement of publicly traded companies.
This electronic method of clearing securities speeds up the receipt of stock and cash and accelerates the settlement process for investors trading on the OTC marketplace.
Major online brokers such as Ameritrade, Fidelity, Charles Schwab (NYSE:SCHW) and E-Trade all offer OTCQB trades.
The OTCQB marketplace is run through OTC Link, an inter-dealer quotation and trading system that is registered with the Securities and Exchange Commission (SEC) as a broker-dealer and as an alternative trading system (ATS).