OTC Trading

OTC trading involves direct bilateral trading between two parties. These trades are often customized to meet the specific needs of both parties and are common for large institutional trades where discretion and flexibility are essential.

It offers flexibility, privacy, and the ability to execute large trades without impacting market prices. It allows firms to negotiate terms directly and tailor transactions to their specific needs. However, managing collateral, settlement, and ensuring trust between parties can be challenging without the right infrastructure.

BridgePort enhances OTC trading by providing real-time connectivity between trading firms, custodians, and ECNs. Our middleware enables trading firms to extend lines of credit to each other, ensuring seamless collateral management, trade confirmations, and secure settlement, reducing the risks associated with bilateral trades.