OTC derivative

OTC 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 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. . 2010.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • 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

  • Derivative (finance) — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • derivative — A financial instrument, the price of which has a strong relationship with an underlying commodity, currency, economic variable, or financial instrument. The different types of derivatives are futures contracts, forwards (see forward dealing),… …   Big dictionary of business and management

  • derivative — A financial instrument, the price of which has a strong correlation with an underlying commodity, currency, economic variable or financial instrument. The different types of derivatives are futures contracts, forwards (see forward dealing), swaps …   Accounting 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) 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

  • Equity derivative — In finance, an equity derivative is a class of financial instruments whose value is at least partly derived from one or more underlying equity securities. Market participants trade equity derivatives in order to transfer or transform certain… …   Wikipedia

  • Energy derivative — Also known as energy trade, oil trade, gas trade, power trade. Major players include major trading houses, oil companies, utilities, financial institutions.This article can briefly present the definition, applications, and brief history of the… …   Wikipedia

  • exchange-traded derivative contracts — Some derivatives are traded on organized exchanges. These derivatives usually have margin requirements. Common exchange traded derivatives include futures and options. Other derivatives, such as swaps, are not exchange traded but are traded in… …   Financial and business terms

  • Commodity Futures Modernization Act of 2000 — The Commodity Futures Modernization Act of 2000 (CFMA) is United States federal legislation that officially ensured the deregulation of financial products known as over the counter derivatives. It was signed into law on December 21, 2000 by… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”