Außerbörslich

Außerbörslich, a German term often translated as "over-the-counter" (OTC) or "off-exchange," refers to trading in financial instruments that takes place directly between two parties rather than on a regulated stock exchange. This type of trading bypasses the centralized trading facilities of exchanges like the Frankfurt Stock Exchange or the New York Stock Exchange.

OTC markets are characterized by their decentralized nature and the fact that they are often less transparent than exchange-traded markets. Transactions are negotiated directly between buyers and sellers, or through intermediaries like brokers and dealers. This can allow for greater flexibility in terms of contract size, settlement dates, and the specific terms of the trade.

Many types of financial instruments can be traded außerbörslich, including stocks, bonds, currencies, commodities, and derivatives such as options and futures. While some securities are exclusively traded OTC, others may have listings on exchanges as well as being available for OTC trading. The OTC market can be particularly important for less liquid securities or for customized transactions that are not suited for standardized exchange trading.

However, the lack of central oversight and standardization in außerbörslich trading can also present higher risks. Counterparty risk, the risk that one party to a contract will default on its obligations, is a significant concern in OTC markets. Regulatory frameworks exist to oversee parts of the OTC market, but they can differ from those governing exchange-traded instruments.