The market for securities in which listed securities are traded away from an organized market- i.e., over the counter (OTC). Trading takes place directly between institutional investors without going through exchanges. However, participants typically resort to the services of an intermediary (a broker/dealer). Similarly, a broker-dealer may trade listed securities directly with another broker (via a computerized system), rather than through the floor of an exchange.

The direct trades take place between institutions, mutual funds, pension funds, broker-dealers, etc.