Authors: Julien Hugonnier, Benjamin Lester, And Pierre-Olivier Weill
Many of the largest financial markets in the world do not organize trade through an exchange but rather operate within a decentralized or over-the-counter structure.
Understanding how these markets work has become increasingly important in recent years, as illiquidity in certain OTC markets has appeared as the first signs of trouble—if not the cause itself—of the past two financial crises.
