Ylipörssikaupat

Ylipörssikaupat is a Finnish term that translates to "over-the-counter" or "OTC" transactions in English. In the context of finance, it refers to the trading of securities or other financial instruments that are not listed on a formal stock exchange. These transactions typically occur directly between two parties, without the need for an exchange's infrastructure or regulatory oversight.

OTC markets offer flexibility and can be useful for trading a wider range of assets than might be available on exchanges, including certain types of bonds, derivatives, and currencies. They can also allow for customized contracts tailored to the specific needs of the parties involved. However, because OTC markets are less regulated than exchanges, they may carry higher risks. These risks can include counterparty risk, where one party defaults on their obligations, and liquidity risk, where it may be difficult to find a buyer or seller for the asset. Transparency can also be lower in OTC markets, as information about prices and trading volumes is not as readily available as on exchanges.

The regulatory landscape for OTC derivatives has evolved significantly, particularly after the 2008 financial crisis, with efforts to increase transparency and reduce systemic risk through measures like central clearing and trade reporting.