OOTC - OTC, Page 3

OTC (Over-the-Counter) is a system of trading that enables the direct exchange of financial instruments between market participants without the involvement of a centralized exchange. This system is widely used for trading shares of companies that are not listed on official exchanges, as well as for trading other assets such as bonds, currencies, derivatives, and commodities. Trading on the OTC market is facilitated by dealers who act as intermediaries between buyers and sellers, providing market liquidity and ensuring the execution of transactions. The main advantages of OTC trading include more flexible trading conditions, faster transaction execution, and the ability to trade assets that are not available on official exchanges. However, OTC trading also carries certain risks, such as a lack of transparency and the absence of standard regulatory rules that are characteristic of centralized exchange trading.