The OTC Bulletin Board (OTCBB) is a quotation system that provides real-time stock quotes, last-sale prices and volume for many over-the-counter securities. The OTCBB uses an electronic inter-dealer quotation system. OTCBB securities are not listed on NASDAQ or other national securities exchanges.

The regulation of brokers-dealers who operate on the OTCBB comes from the National Association of Securities Dealers (NASD). The NASD was registered in 1938 as a national securities association. Under the OTCBB's eligibility rule, companies that want to have their securities quoted on the OTCBB must file current financial reports with the Securities Exchange Commission (SEC) or with their banking or insurance regulators.

The OTCBB provides quotes for more than 3,300 securities; 230 market makers participate in trading OTCBB shares. OTCBB transmits real-time quote, price, and volume information and provides other market data on certain securities. The OTCBB began operation in 1990 on a pilot basis. In April 1997, the SEC approved its operation on a permanent basis, albeit with some modifications.

As a regulated stock quotation service, the OTCBB quotes prices for securities including national, regional and foreign equities. The OTCBB also carries quotes for warrants, units, American Depository Receipts and Direct Participation Programs. The OTCBB is for subscribing members; it is not an issuer listing service.
There are no minimum quantitative standards that issuers who are quoted on OTCBB must have, but an eligibility rule limits quotes to the securities of issuers with current regulatory filings. If securities quoted on the OTCBB become delinquent in their required filings, they will be removed following a 30- or 60-day grace period if they do not make their required filing during that time.

Investors must trade OTCBB securities through a broker/dealer. These market makers enter quotes for and trade OTCBB securities through a closed computer network. This network can be accessed through the NASDAQ Workstation, but investors should not confuse the NASDAQ with the OTCBB.

In 2006, the average daily dollar volume of shares traded on the OTCBB was $202 million, up from $186 million in the previous year and up from $152 million in 1996. Average daily share volume rose to 2.6 billion, up from 1.7 billion in 2005 and 62 million in 1996.

In December 2006, the most active shares quoted on the OTCBB were of Universal Express (USXP), which closed the year at $0.0039. Universal Express is a 23-year- old logistics and transportation company. Its subsidiary, Luggage Express,in January 2007 agreed to advertise in both the National Hockey League’s All Star Game and at the Sundance Film Festival.