Bonds have traditionally been traded in private, over-the-counter transactions.
His fictitious portfolio did not just comprise over-the-counter transactions with big banks, where agreed credit limits meant he could avoid margin calls.
Last year over-the-counter transactions of VERs globally hit a record $397m, according to data from New Energy Finance (NEF), a research firm.
Although retail prices of over-the-counter transactions are not publicly reported, interdealer prices for the issues have been published since February 1965 by NASD and later FINRA.
In Japan a second security section has been introduced into the major exchanges to provide more effective trading procedures for over-the-counter transactions.
Off-market trading has always existed as over-the-counter transactions, but the technology now exists to bring investors together electronically in anonymity.
While the acquisition of NYSE Euronext by ICE is all about derivatives, it is about transparent exchange-traded and centrally cleared derivatives – not the opaque, bilateral, over-the-counter transactions that interconnect global banks.
Another area that France and the G-20 finance ministries are examining is the possibility of limiting the scope of positions in agricultural derivatives, standardizing those products and tightening regulation of over-the-counter transactions.
The initial rate on over-the-counter transactions (meaning those negotiated directly between buyer and seller, rather than via an exchange of some sort) was significantly higher, at 0.22%.
Trading through a clearinghouse normally requires cash to be posted as collateral by the hedger, unlike for bilateral over-the-counter transactions, in which there is no such requirement.
The drug company also said that overall sales at its consumer health division fell 11.0% to $1.3 billion, as over-the-counter transactions slid in some emerging markets and the United States.
