What Is an Over-the-Counter Market?

Over-the-counter refers to a market formed by buying and selling securities through a large number of decentralized securities counters such as investment banks and major telecommunications facilities. Sometimes called the over-the-counter market or the front-end market, it forms another important part of the bond trading market. As far as categories are concerned, the securities traded in the OTC market are mainly government bonds, and the proportion of stocks is very small. As for the various types of bonds traded, from the point of view of transaction volume, mainly national bonds. ^[1]

OTC market

Over-the-counter refers to a market formed by buying and selling securities through a large number of decentralized securities counters such as investment banks and major telecommunications facilities. Sometimes called the over-the-counter market or the front-end market, it forms another important part of the bond trading market. As far as categories are concerned, the securities traded in the OTC market are mainly government bonds, and the proportion of stocks is very small. As for the various types of bonds traded, from the point of view of transaction volume, mainly national bonds. ^[1]

OTC market is what the industry calls

(1) The OTC market is a decentralized intangible market. It does not have a fixed, centralized trading place, but is run by many independent companies.

In foreign countries, the participants in the OTC market are mainly securities dealers and investors. Securities dealers participating in over-the-counter trading include:

(1) Member securities dealers, that is, members set up by stock exchanges to operate over-the-counter transactions.

(2) Non-member securities dealers, or over-the-counter securities dealers, are not members of the stock exchange, but have been approved to establish securities business institutions, with the main business of buying and selling unlisted securities and bonds.

(3)

OTC market and stock exchange

The over-the-counter market, referred to as the OTC market, usually refers to the over-the-counter market or the over-the-counter market, but today's OTC market is not just a traditional over-the-counter market. Some countries have formed other OTC market.

1.Counter trading market

It is through securities companies,

The U.S. OTC market includes four levels: NASDAQ National Capital Market, NASDAQ Small Capital Market,

The "Twelfth Five-Year Plan" for service industry development issued by the State Council is clear, vigorously develop the capital market, improve the multi-level capital market system, and promote the establishment of a nationwide OTC market. ^[4]

In terms of the financial services industry, the Plan specifies a number of development contents, including strengthening the construction of the financial market system and optimizing the social financing structure; promoting policy banks, large commercial banks, joint-stock commercial banks, small and medium-sized banking financial institutions, and asset management companies. Implement a differentiated development strategy; make use of the asset allocation and financing service functions of credit financing, securities, insurance, trust, wealth management, guarantee and other services; vigorously develop the capital market, improve the multi-level capital market system, and promote the establishment of a national OTC market; Speed up the development of the bond market and improve the variety system for commodity futures and financial futures.