Exchange-Traded oTc Trading practices Central market place. Trading under defined rules and regulation. Access is only via exchange members. Direct contracts between counterparties, often via brokers. Transparency Exchange provides continually updated Very little publicly available information information about prices and volumes of about the prices of recently agreed contracts traded. contracts. Indicative prices are often postec ‘on brokers’ screens. Credit risk Minimal credit risk since the exchange Counterparty credit risk is an important clearinghouse acts as the counterparty to all trades. Most exchanges insist on initial margin deposits and daily marking to market. Netting different positions is easy. consideration. Margins, regular revaluation and posting of collateral can be agrood, but are not obligatory. Similarly, there is no ith different netting of positions