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Over-the-counter (finance)

Index Over-the-counter (finance)

Over-the-counter (OTC) or off-exchange trading is done directly between two parties, without the supervision of an exchange. [1]

41 relations: Bank for International Settlements, Central counterparty clearing, Chicago Mercantile Exchange, Collateral (finance), Collateral management, Commodity, Credit risk, Dark pool, Default (finance), Delta One, Derivative (finance), Diversification (finance), Exchange (organized market), Exchange rate, Financial crisis of 2007–2008, Financial Industry Regulatory Authority, Financial instrument, Forward contract, Fourth market, Hedge (finance), Intercontinental Exchange, Interest rate, International Monetary Fund, International Swaps and Derivatives Association, LCH (clearing house), London Platinum and Palladium Market, Market liquidity, Market maker, Market price, Markit, New York Mercantile Exchange, Orders of magnitude (numbers), OTC Bulletin Board, OTC Markets Group, Set-off (law), Stock, Swap (finance), Third market, Trade Information Warehouse, Transparency (market), U.S. Securities and Exchange Commission.

Bank for International Settlements

The Bank for International Settlements (BIS) is an international financial institution owned by central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks".

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Central counterparty clearing

Central counterparty clearing (CCP), also referred to as a central counterparty, is a financial institution that takes on counterparty credit risk between parties to a transaction and provides clearing and settlement services for trades in foreign exchange, securities, options, and derivative contracts.

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Chicago Mercantile Exchange

The Chicago Mercantile Exchange (CME) (often called "the Chicago Merc", or "the Merc") is an American financial and commodity derivative exchange based in Chicago and located at 20 S. Wacker Drive.

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Collateral (finance)

In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.

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Collateral management

Collateral has been used for hundreds of years to provide security against the possibility of payment default by the opposing party in a trade.

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In economics, a commodity is an economic good or service that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.

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Credit risk

A credit risk is the risk of default on a debt that may arise from a borrower failing to make required payments.

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Dark pool

In finance, a dark pool (also black pool) is a private forum for trading securities, derivatives, and other financial instruments.

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Default (finance)

In finance, default is failure to meet the legal obligations (or conditions) of a loan, for example when a home buyer fails to make a mortgage payment, or when a corporation or government fails to pay a bond which has reached maturity.

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Delta One

Delta One products are financial derivatives that have no optionality and as such have a delta of (or very close to) one – meaning that for a given instantaneous move in the price of the underlying asset there is expected to be an identical move in the price of the derivative.

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Derivative (finance)

In finance, a derivative is a contract that derives its value from the performance of an underlying entity.

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Diversification (finance)

In finance, diversification is the process of allocating capital in a way that reduces the exposure to any one particular asset or risk.

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Exchange (organized market)

An exchange, or bourse also known as a trading exchange or trading venue, is an organized market where (especially) tradable securities, commodities, foreign exchange, futures, and options contracts are sold and bought.

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Exchange rate

In finance, an exchange rate is the rate at which one currency will be exchanged for another.

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Financial crisis of 2007–2008

The financial crisis of 2007–2008, also known as the global financial crisis and the 2008 financial crisis, is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s.

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Financial Industry Regulatory Authority

In the United States, the Financial Industry Regulatory Authority, Inc. (FINRA) is a private corporation that acts as a self-regulatory organization (SRO).

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Financial instrument

Financial instruments are monetary contracts between parties.

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Forward contract

In finance, a forward contract or simply a forward is a non-standardized contract between two parties to buy or to sell an asset at a specified future time at a price agreed upon today, making it a type of derivative instrument.

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Fourth market

Fourth market trading is direct institution-to-institution trading without using the service of broker-dealers, thus avoiding both commissions, and the bid-ask spread.

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Hedge (finance)

A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment.

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Intercontinental Exchange

Intercontinental Exchange is an American company that owns exchanges for financial and commodity markets, and operates 23 regulated exchanges and marketplaces.

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Interest rate

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum).

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International Monetary Fund

The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C., consisting of "189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world." Formed in 1945 at the Bretton Woods Conference primarily by the ideas of Harry Dexter White and John Maynard Keynes, it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international payment system.

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International Swaps and Derivatives Association

The International Swaps and Derivatives Association (ISDA) is a trade organization of participants in the market for over-the-counter derivatives.

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LCH (clearing house)

LCH is a British clearing house that serves major international exchanges, as well as a range of OTC markets.

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London Platinum and 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.

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Market liquidity

In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price.

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Market maker

A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on the bid-offer spread, or turn. The U.S. Securities and Exchange Commission defines a "market maker" as a firm that stands ready to buy and sell stock on a regular and continuous basis at a publicly quoted price.

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Market price

In economics, market price is the economic price for which a good or service is offered in the marketplace.

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Markit Ltd. is a global financial information and services company with over 4,000 employees, founded in 2003 as an independent source of credit derivative pricing.

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New York Mercantile Exchange

The New York Mercantile Exchange (NYMEX) is a commodity futures exchange owned and operated by CME Group of Chicago.

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Orders of magnitude (numbers)

This list contains selected positive numbers in increasing order, including counts of things, dimensionless quantity and probabilities.

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OTC Bulletin Board

The OTC (Over-The-Counter) Bulletin Board or OTCBB is a United States quotation medium operated by the Financial Industry Regulatory Authority (FINRA) for its subscribing members.

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OTC Markets Group

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.

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Set-off (law)

In law, set-off or netting are legal techniques applied between persons with mutual rights and liabilities, replacing gross positions with net positions.

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The stock (also capital stock) of a corporation is constituted of the equity stock of its owners.

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Swap (finance)

A swap is a derivative contract where two parties exchange financial instruments.

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Third market

Third market in finance, refers to the trading of exchange-listed securities in the over-the-counter (OTC) market.

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Trade Information Warehouse

The Trade Information Warehouse is a service offering of the Depository Trust & Clearing Corporation's Deriv/SER, and is described by DTCC as "a centralized and secure global infrastructure for processing over-the-counter (OTC) derivatives over their life cycle".

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Transparency (market)

In economics, a market is transparent if much is known by many about: What products and services or capital assets are available, market depth (quantity available), what price, and where.

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U.S. Securities and Exchange Commission

The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government.

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OTC Traded, OTC securities, OTC-traded, OTC-traded stocks, Over the counter (finance), Over-The-Counter Market, Over-the-Counter Bulletin Board market, Over-the-counter market, Over-the-counter trading.


[1] https://en.wikipedia.org/wiki/Over-the-counter_(finance)

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