over-the-counter derivatives
- over-the-counter derivatives
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USA
A derivative product not traded on any organized, regulated exchange. OTC derivatives are customized, bilateral, privately negotiated contracts, which, as a result, can be illiquid as compared to standardized exchange-traded derivatives. No exchange operates between, and essentially guarantees, the performance of the parties to an OTC derivative as is the case with exchange-traded derivatives. Examples of OTC derivatives include most credit derivatives, including credit default swaps (CDS), interest rate swaps and currency swaps.
See also
Practical Law Dictionary. Glossary of UK, US and international legal terms.
www.practicallaw.com.
2010.
Look at other dictionaries:
over-the-counter — ( OTC) Purchases and sales of financial instruments that do not take place in organized exchanges such as the New York Stock Exchange or the Chicago Board of Trade are termed over the counter. The phrase may be used as a noun to describe capital… … Financial and business terms
over the counter — ( OTC) Purchases and sales of financial instruments that do not take place in organized exchanges such as the New York Stock Exchange or the Chicago Board of Trade are termed over the counter. The phrase may be used as a noun to describe capital… … Financial and business terms
over-the-counter (OTC) derivatives — over the counter (OTC) derivative USA A derivative product not traded on any organized, regulated exchange. OTC derivatives are customized, bilateral, privately negotiated contracts, which, as a result, can be illiquid as compared to standardized … Law dictionary
over-the-counter derivative — over the counter (OTC) derivative USA A derivative product not traded on any organized, regulated exchange. OTC derivatives are customized, bilateral, privately negotiated contracts, which, as a result, can be illiquid as compared to standardized … Law dictionary
over-the-counter — (OTC) Not traded on an exchange. The OTC market for derivatives or other investments is created outside organised exchanges, by parties (such as companies, banks and dealers) entering into contracts directly with each other. This enables the… … Law dictionary
Over-the-counter (finance) — Within the derivatives markets, many products are traded through exchanges. An exchange has the benefit of facilitating liquidity and also mitigates all credit risk concerning the default of a member of the exchange. Products traded on the… … Wikipedia
Over-The-Counter - OTC — A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase over the counter can be used to refer to stocks that trade via a dealer network as opposed to on a centralized exchange. It also refers … Investment dictionary
Over The Counter — La negociación Over The Counter (OTC) negocia instrumentos financieros (acciones, bonos, materias primas, swaps o derivados de crédito) directamente entre dos partes. Este tipo de negociación se realiza fuera del ámbito de los mercados… … Wikipedia Español
Derivatives law — is the area of law governing derivatives. It is associated with principles of contract law, and practitioners must also have a good understanding of insolvency, netting and set off, and conflict of laws. Over the counter derivatives are… … Wikipedia
The Depository Trust & Clearing Corporation — (DTCC) USA A holding company set up in 1999 to combine the Depository Trust Company (DTC) and the National Securities Clearing Corporation (NSCC) to offer clearance and settlement services to the securities markets. The DTCC now operates through… … Law dictionary
