Over-the-counter market

The market for tailor made securities or derivatives created outside organised exchanges by dealers trading directly with one another, or their counterparties, by telephone, screen, telex or electronic network. A method of trading that does not involve a multilateral system. The options are generally tailored to meet specific requirements of customers with no standardisation of exercise prices or expiry dates, as is the case with exchange traded options. Tradability is low or impossible.