Over the Counter Transaction

This Issue in United States

Over the Counter (otc) Transaction

Concept of Over the Counter (otc) Transaction in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A derivative (i.e. an instrument that transfers risk from one party to the other) transaction between two counterparties where the terms of such transaction are freely negotiated (as distinct from an exchange traded transaction where the terms are prescribed by the rules of the relevant exchange).

Resources

See Also

• Derivatives Contract