What is OTC trading? What are the OTC trading platforms?

Over-the-counter trading (OTC) is a financial transaction conducted outside an exchange. Unlike centralized trading, OTC trading occurs between two parties and is matched by a broker or market maker. OTC trading platforms include retail brokers (such as Esprit Global), market makers (such as Virtu Financial), electronic trading platforms (such as Tradeweb), private exchanges (such as Liquidnet) and dark pools (such as Dark Pool Hub), providing various Provide trading services for various assets.

What is OTC?

Over-the-counter (OTC) trading is a decentralized financial transaction that occurs outside an exchange. Unlike centralized trading, such as those conducted on a stock exchange, OTC trading occurs between two parties, usually through a broker or market maker.

What are the OTC trading platforms?

• Retail Brokers: Provide a wide range of OTC asset trading services, including stocks, bonds, foreign exchange and commodities. For example: Esprit Global, Futu Securities.
• Market Maker: Provides quotes and trades for specific assets. They provide liquidity to buyers and sellers and ensure timely execution of orders. For example: Virtu Financial, Citadel Securities.
• Electronic Trading Platform (ETP): Provides an electronic platform for matching OTC transactions. They connect buyers and sellers and handle order matching and settlement. For example: Tradeweb, Bloomberg EMSX.
• Private Exchange: Provides OTC trading services to selected participants. These platforms are usually restricted to institutional or accredited investors. For example: Liquidnet, PivotalPath.
• Dark Pool: A type of OTC platform that provides anonymous trading, allowing buyers and sellers to trade without revealing their intentions to the public. For example: Dark Pool Hub, BlockCross.

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