Not traded on a recognised exchange.

The OTC market comprises securities and/or derivatives traded by parties (such as companies, banks and dealers) directly with each other rather than through a recognised exchange. OTC derivatives and securities enable parties to tailor the terms of the contract or trade to match their particular requirements. Trading is concluded directly (often by telephone) between the parties with documentation evidencing the trade exchanged between the contracting parties.

OTC derivatives and securities are not listed or traded on a recognised exchange.

Examples of OTC trading facilities are the US OTC Bulletin Board and the Pink Sheets .

For an overview on OTC derivatives, see PLC Finance, Practice note, Derivatives: overview: OTC derivatives and exchange traded derivatives.