A New York-based firm has reached a preliminary deal to acquire the OTC Bulletin Board from the Financial Regulatory Authority, Inc.

FINRA and Rodman & Renshaw Capital Group, Inc. announced that they have reached a preliminary agreement on the acquisition of certain assets of the OTC Bulletin Board, which is currently operated by FINRA. The deal is still subject to negotiation and execution of definitive documentation and regulatory approvals. It is expected that the transaction will close in the first quarter of 2011. No further terms were announced.

FINRA has been looking to get out of the business of operating the OTCBB, and shift to acting as the consolidator and disseminator of all quotation and trade information for unlisted equity securities. It would also continue to be the primary regulator of all OTC trading activity. As part of that plan, it has been seeking to sell assets, including: the OTCBB.com Web site URL and reservation rights; certain OTCBB.com content; and the OTCBB trademark.

“We are extremely excited with the prospects of acquiring the OTC Bulletin Board assets and the opportunity that it presents for expanding the quality services and products that we offer to the financial community and the potential to further diversify our revenue base,” said Edward Rubin, Rodman & Renshaw’s CEO and president. “We look forward to our continued pursuit of this initiative with FINRA and consummating the transaction.”

Rodman & Renshaw Capital Group, Inc. is a holding company with a number of direct and indirect subsidiaries, including Rodman & Renshaw, LLC, a full-service investment bank.

IE