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|“Over-the-counter” or “OTC”|
"Over the counter" or "OTC", trading is a method of trading that does not take place on an organised venue such as a regulated market or an MTF. It can take various shapes from bilateral trading to via permanent structures, such as systematic internalisers and broker networks (Glossary of useful terms linked to markets in financial instruments).
In turn, pursuant to MiFIR characteristics, OTC trades include transactions which are non-systematic, ad-hoc, irregular and infrequent, are carried out between eligible or professional counterparties, and are part of a business relationship which is itself characterised by dealings above standard market size, and where the deals are carried out outside the systems usually used by the firm concerned for its business as a systematic internaliser.
|Last Updated on Saturday, 06 June 2015 14:01|