Over-the-counter (finance)

over-the-counterOTCover the counterover-the-counter (OTC)over-the-counter marketoff-exchangeOTC marketover the counter (OTC)over-the-counter tradingOTC derivatives
Over-the-counter (OTC) or off-exchange trading is done directly between two parties, without the supervision of an exchange.wikipedia
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Derivative (finance)

derivativesderivativefinancial derivatives
OTC trading, as well as exchange trading, occurs with commodities, financial instruments (including stocks), and derivatives of such products. For derivatives, these agreements are usually governed by an International Swaps and Derivatives Association agreement.
Most derivatives are traded over-the-counter (off-exchange) or on an exchange such as the New York Stock Exchange, while most insurance contracts have developed into a separate industry.

OTC Bulletin Board

OTCBBOver-the-Counter Bulletin BoardOTC
In the United States, over-the-counter trading in stock is carried out by market makers using inter-dealer quotation services such as OTC Link (a service offered by OTC Markets Group) and the OTC Bulletin Board (OTCBB, operated by FINRA).
The board was used for many over-the-counter (OTC) equity securities that are not listed on the NASDAQ or a national stock exchange, it has shrunk significantly as stock have migrated to the trading facilities of the OTC Markets Group.

OTC Markets Group

Pink SheetsOTCQBOTCQX
In the United States, over-the-counter trading in stock is carried out by market makers using inter-dealer quotation services such as OTC Link (a service offered by OTC Markets Group) and the OTC Bulletin Board (OTCBB, operated by FINRA).
OTC Markets Group (previously known as Pink Sheets) is an American financial market providing price and liquidity information for almost 10,000 over-the-counter (OTC) securities.

Stock

equitiesequityshares
OTC trading, as well as exchange trading, occurs with commodities, financial instruments (including stocks), and derivatives of such products. The OTC derivative market is significant in some asset classes: interest rate, foreign exchange, stocks, and commodities.
Small companies that do not qualify and cannot meet the listing requirements of the major exchanges may be traded over-the-counter (OTC) by an off-exchange mechanism in which trading occurs directly between parties.

Third market

third-market
Although exchange-listed stocks can be traded OTC on the third market, it is rarely the case.
Third market in finance, refers to the trading of exchange-listed securities in the over-the-counter (OTC) market.

Exchange (organized market)

exchangeexchangestrading venue
Over-the-counter (OTC) or off-exchange trading is done directly between two parties, without the supervision of an exchange.

Forward contract

forwardsforwardforward transactions
Forwards and swaps are prime examples of such contracts.
However, being traded over the counter (OTC), forward contracts specification can be customized and may include mark-to-market and daily margin calls.

Financial crisis of 2007–08

financial crisis of 2007–2008global financial crisis2008 financial crisis
Especially counterparty risk has gained particular emphasis due to the credit crisis in 2007.

Hedge (finance)

hedginghedgehedged
One of them focuses on controlling credit exposure with diversification, netting, collateralisation and hedging.
A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, gambles, many types of over-the-counter and derivative products, and futures contracts.

Collateral management

Collateral ManagerCollateral Risk Management
In the modern banking industry collateral is mostly used in over the counter (OTC) trades.

Swap (finance)

swapsswapfinancial swap
Forwards and swaps are prime examples of such contracts.
Those instruments are traded over-the-counter (OTC) and there are only a few specialized investors worldwide.

London Platinum and Palladium Market

London Platinum & Palladium Market
The London Platinum and Palladium Market (LPPM) is an over-the-counter trading centre for platinum and palladium and a commodity trading association.

New York Mercantile Exchange

NYMEXCOMEXCommodity Exchange
The NYMEX has created a clearing mechanism for a slate of commonly traded OTC energy derivatives which allows counterparties of many bilateral OTC transactions to mutually agree to transfer the trade to ClearPort, the exchange's clearing house, thus eliminating credit and performance risk of the initial OTC transaction counterparts.
NYMEX held a virtual monopoly on "open market" oil futures trading (as opposed to the "dark market" or over-the-counter market.

Market liquidity

liquidityliquidilliquid
A stock exchange has the benefit of facilitating liquidity, providing transparency, and maintaining the current market price.

Price

market pricepricesretail price
A stock exchange has the benefit of facilitating liquidity, providing transparency, and maintaining the current market price.

Commodity

commoditiescommodity pricescommodity good
OTC trading, as well as exchange trading, occurs with commodities, financial instruments (including stocks), and derivatives of such products. The OTC derivative market is significant in some asset classes: interest rate, foreign exchange, stocks, and commodities.

Financial instrument

financial instrumentsinstrumentinstruments
OTC trading, as well as exchange trading, occurs with commodities, financial instruments (including stocks), and derivatives of such products.

Interest rate

interest ratesdiscount rateinterest
The OTC derivative market is significant in some asset classes: interest rate, foreign exchange, stocks, and commodities.

Exchange rate

exchange ratesreal exchange rateforeign exchange rate
The OTC derivative market is significant in some asset classes: interest rate, foreign exchange, stocks, and commodities.

Bank for International Settlements

BISBank of International SettlementsBank for International Settlements (BIS)
"The Bank for International Settlements statistics on OTC derivatives markets showed that notional amounts outstanding totalled $693 trillion at the end of June 2013... The gross market value of OTC derivatives – that is, the cost of replacing all outstanding contracts at current market prices – declined between end-2012 and end-June 2013, from $25 trillion to $20 trillion."

Market maker

market makingmarket makersmarket-making
In the United States, over-the-counter trading in stock is carried out by market makers using inter-dealer quotation services such as OTC Link (a service offered by OTC Markets Group) and the OTC Bulletin Board (OTCBB, operated by FINRA).

Financial Industry Regulatory Authority

FINRANational Association of Securities DealersNASD
In the United States, over-the-counter trading in stock is carried out by market makers using inter-dealer quotation services such as OTC Link (a service offered by OTC Markets Group) and the OTC Bulletin Board (OTCBB, operated by FINRA).

U.S. Securities and Exchange Commission

Securities and Exchange CommissionSECUnited States Securities and Exchange Commission
Stocks quoted on the OTCBB must comply with certain limited U.S. Securities and Exchange Commission (SEC) reporting requirements.

Bilateral

bilaterallyBilateral (disambiguation)to both sides
An over-the-counter is a bilateral contract in which two parties (or their brokers or bankers as intermediaries) agree on how a particular trade or agreement is to be settled in the future.

International Swaps and Derivatives Association

ISDAInternational Swaps and Derivatives Association (ISDA)recovery amounts
For derivatives, these agreements are usually governed by an International Swaps and Derivatives Association agreement.