What does OTCC mean in BANKING

Over The Counter Clearing (OTCC) is an acronym used to refer to a type of clearing mechanism that takes place off of a traditional exchange. This method allows parties to facilitate financial transactions directly between themselves, thereby avoiding the need for a centralized trading venue or outside broker.

OTCC offers several advantages over trading on an exchange. It allows for faster settlement times since there is no need for negotiation or approval from an exchange or broker; it also allows both sides of the transaction more privacy since there is no third-party oversight; and perhaps most importantly, it eliminates counterparty risk since all parties involved in the transaction know one another's creditworthiness beforehand.

Generally speaking, most individuals and companies can use OTCC as long as they meet certain legal requirements and have prior experience in arranging such trades -- though some countries may require special licensing in order for certain entities to take part in this form of trading.

Yes, though many different rules and regulations exist depending on the country where you are based. For instance, U.S.-based firms must follow federal regulations such as Sarbanes-Oxley in order to participate in this type of trading activity, while firms operating elsewhere may be subject to different jurisdictional regulations and requirements depending on their location.

Like any other form of trading activity, Over The Counter Clearing carries risk -- primarily related to having incomplete information about the counterparties involved in the transaction and being exposed to unforeseen market movements that could affect your investment's performance before settlement can occur. As such, it's important to do your due diligence when considering participating in an OTCC transaction so that you understand all related factors beforehand.