WordWeb Online

1. Contracts that are traded (and privately negotiated) directly between two parties, without going through an exchange or other intermediary.
   "The OTC derivative market is the largest market for derivatives, and is largely unregulated with respect to disclosure of information between the parties, since the OTC market is made up of banks and other highly sophisticated parties, such as hedge funds.";
   - over-the-counter derivative

Type of: derivative, derivative instrument