Over the counter and Treaty: Difference between pages

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imported>Doug Williamson
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(OTC).  
1. ''International law.''


Direct dealing between counterparties - for example corporates and banks - which allows for tailoring of financial contracts but which also exposes the parties to credit risk.  
A treaty is a binding international agreement in writing between two or more states.


Exchange trading is the alternative to OTC dealing. Exchange traded instruments are standardised, and less flexible, but the interposition of the exchange substantially reduces credit risk.
Many treaties need domestic ratification to bring them into force.


More specifically, this is a market for the trade of securities that are not listed on the stock exchange consisting of bilateral dealing contracts between brokers.


As opposed to an organised stock exchange, prices on the OTC markets are set by direct negotiation between dealers and not by an auction system.   
2.  ''Law - contract law.''


The OTC market is a market for companies which do not fulfil the listing requirements of the official stock exchange markets, or for derivatives or other financial instruments that do not have a liquid market.
Negotiation.




== See also ==
==See also==
* [[Exchange traded]]
* [[Bloc]]
* [[Exchange-traded option]]
* [[Contract ]]
* [[Listing]]
* [[Free trade]]
* [[NASDAQ]]
* [[Globalisation]]
* [[Security]]
* [[Harmonisation]]
* [[Stock]]
* [[International law]]
* [[International trade]]
* [[Invitation to treat]]
* [[Law]]
* [[Model tax treaty]]
* [[NATO]]
* [[Private treaty]]
* [[Protectionism]]
* [[Quota]]
* [[Ratification]]
* [[Tariff]]
* [[Trade war]]
* [[Treaty on European Union]]
* [[Treaty on the Functioning of the European Union]]


 
[[Category:Accounting,_tax_and_regulation]]
== Other links ==
[[Category:The_business_context]]
 
[http://www.treasurers.org/otc European regulation of OTC derivatives: Implications for non-financial companies – ACT briefing note, April 2013]
 
[[Category:Corporate_financial_management]]
[[Category:Risk_frameworks]]

Revision as of 09:57, 29 October 2022

1. International law.

A treaty is a binding international agreement in writing between two or more states.

Many treaties need domestic ratification to bring them into force.


2. Law - contract law.

Negotiation.


See also

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