Over the counter
Where are these operations made?
OTC trade is carried out outside organized markets. For example, if an user aims to purchase stock markets securities, the most common process is to do it through a bank, broker or other standard financial entities. By doing so, the user has to accept the market price and the standard conditions set by the financial entities, commisions and operation limits.
Buying or selling the same stocks Over The Counter implies to directly negotiate all the conditions between the stock owner and the buyer, so price, transfer conditions, discounts, etc. can be defined by both parts in every contract made.
Who does this?
OTC operations are normally executed between individuals or businesses with the ability and interest for a bilateral commercial relation of this kind. Normally they are carried out by big asset suppliers and companies with a great buying capacity. OTC operations are very common, but most of the times they are performed without necessarily being called so.
Which are the advantages?
Conditions agreed are unique in every case, as OTC operations are the results of a free negotiation between two parts. Metaphorically, the OTC market is like going to a tailor and get a custom suit that perfectly fits you. Although the standard markets are easier to access, they offer less favorable conditions, as you can only choose clothes in standard sizes, colors and shapes.
Are they secure?
Yes. Our OTC services are subject to Georgia's legal framework, and are executed under a robust banking structure that is fully integrated in the global financial system.
Like other financial operations, the OTC market is subject to commercial law.
We only work with banks that specially care about protecting our client's assets while making the necessary agreements with other intermediary entities, protecting and guaranteeing the proper execution of operations. Additionally, we always require that all these banks demonstrate a proper knowledge of the technology in use.