Page 126 - PRIAA Glossary

ORDINARY SHARES
Ordinary shares, also known as securities, representing equity ownership in a corporation, providing voting rights and entitling the holder to a share of the company’s success through dividends and/or capital appreciation. Shareholders have only the residual claim after dues settlement of bond and preferred shareholders, in the event of liquidation of the company.
ORGANISED TRADING FACILITY (OTF)
An electronic trading venue expected to be similar in scope to a swap execution facility as created under the Dodd-Frank Act. Introduced by the European Commission as part of the MiFID review, an OTF will be used to increase transparency in the trading of over-the-counter (OTC) derivatives.
OTC DERIVATIVES REGULATORS’ FORUM (ODRF)
An international forum consisting of central banks, bank regulators, market regulators and other governmental authorities relevant to the over-the-counter (OTC) derivatives market formed to address questions, issues and objectives related to central counterparties (CCPs) and trade repositories.
OTC DERIVATIVES SUPERVISORS GROUP (ODSG)
A group of cross-jurisdictional over-the-counter (OTC) derivatives supervisors who encourage a consistent supervisory approach to address issues in the OTC derivatives market, set industry commitments and work with market participants to drive market improvements.
OUT-OF-THE-MONEY
An option position where the option holder is negatively affected by the difference between the strike price and the current market price of the underlying. A call option is out- of-the-money if the current market price is lower than the strike. A put option is out-of-the-money if the current market price is higher than the strike.
OUTPERFORMANCE
A strategy whereby each party pays to the other party the performance of a different asset, resulting in a net payout of the outperformance of one asset relative to the other.
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