What are Over the Counter Transactions?
Funderbeam offers a direct trading service called Over the Counter (OTC), which is a type of off-marketplace transaction between two parties. Both the buyer and the seller must agree to the transaction details and have available funds to cover the fees as listed in the fee schedule.
Making an OTC Transaction
For a successful OTC transaction, both parties need to submit an order on the platform.
To place an OTC order, follow these steps:
- While logged in, navigate to Portfolio → Orders
- Click “Place OTC order” at the top of the page.
- Use the search field to find the instrument you want to buy or sell.
- Enter the transaction details such as the amount, price, and expiration date.
- Enter the details of the counter-party. Please note that the counter-party must have a verified Funderbeam account.
- Choose the type of the transfer:
- Delivery vs Payment (DVP) – the securities and the funds change hands simultaneously.
- Free Of Payment (FOP) – the seller transfers the securities without receiving any payment from the buyer.
- Click “Submit”.
Funderbeam will then notify the counter-party to fill a counter-order. Once they have done so, Funderbeam will review the transaction details and complete the transaction.
You can follow your pending OTC transactions from your Dashboard.
Once the transaction is complete, both parties will be notified via email.