otc refers to the over-the-counter market, which is formed by buying and selling securities through a large number of decentralized securities counters and major telecommunications facilities of securities operating institutions like investment banks. Sometimes referred to as the over-the-counter or storefront market, it forms another important part of the bond trading market.
As far as categories are concerned, the securities traded in the over-the-counter market are mainly treasury bonds, with stocks accounting for a very small proportion. As for the various types of bonds traded, in terms of turnover, they are mainly dominated by treasury bonds.
These markets because there is no centralized unified trading system and place, and therefore they are collectively referred to as over-the-counter market, also known as over-the-counter or store trading market, refers to the market outside the exchange by the securities buyers and sellers face-to-face bargaining transactions.
Participating objects:
In foreign countries, the participants in the over-the-counter market are mainly securities dealers and investors. Participate in over-the-counter securities dealers include:
1, member securities dealers, that is, members of the stock exchange to set up institutions to operate over-the-counter trading business.
2, non-member securities dealers, or over-the-counter securities dealers, who are not members of the stock exchange, but approved by the establishment of securities business institutions to buy and sell unlisted securities and bonds as the main business.
3, securities underwriters, that is, financial institutions specializing in underwriting new issues of securities, some countries new issues of securities are mainly sold in the over-the-counter market.
4, specializing in the sale of government bonds or local government bonds and local public **** group bond securities dealers, and so on.