Glossary

OTC (over-the-counter) trading

Off-exchange securities trading via telephone or an electronic system.

Nearly all securities, currencies or precious metals can be traded over-the-counter by banks, investors and Exchange Broker. OTC prices are quoted in separate price lists.

OTC trading is governed by the regulations pertaining to securities transactions; however, it is not subject to statutory supervisory or monitoring regulations. Generally accepted exchange customs serve as a guideline for OTC trading.

Synonyms: Off-floor trading

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