Glossary - O

OMT
Outright Monetary Transactions, This is the new ECB bond-buying plan aimed at easing the eurozone's debt crisis. The ECB aims to cut the borrowing costs of debt-burdened eurozone members by buying their bonds.
 
ONE CANCELS THE OTHER (OCO)
An order stipulating that if one part of the order is executed, then the other part is automatically canceled.
 
OPERATION TWIST
FOMC decision to purchase bonds with maturities of 6-30 years. The funds used for these purchases are generated by the selling of bonds with maturities of less than 3 years. Designed to lower longer term interest rates.
 
OVER THE COUNTER
OTC trading is to trade financial instruments such as stocks, bonds, commodities or derivatives directly between two parties. It is contrasted with trading on an exchange, which occurs via facilities constructed for the purpose of trading.