Third market


Also found in: Dictionary.

Third market

Third Market

The trading of listed securities on the over-the-counter market. The third market avoids the commissions that must be paid to floor brokers. Most of the time, trades on the third market are large block trades involving institutional investors. Dealers must fill orders on the exchange before offering them over-the-counter.

third market

The over-the-counter dealer market in stock that is listed on organized exchanges such as the New York Stock Exchange. The third market developed in the 1960s when institutional investors became dissatisfied with the liquidity and brokerage commissions for large security trades on the exchanges. Compare fourth market, secondary market.

Third market.

Exchange-listed securities, such as those that are traded on the New York Stock Exchange (NYSE) or the American Stock Exchange (AMEX), may also be bought and sold off the exchange, or over-the-counter (OTC), in what is known as the third market.

Typically, third-market transactions are large block trades involving securities firms and institutional investors, such as investment companies and pension funds.

With the growth of electronic communications networks (ECNs), more institutional investors are buying and selling in this way. Among the appeals of the third market are speed, reduced trading costs, and anonymity.

References in periodicals archive ?
The third market of the VSE has been unregulated since November 2007 and operates as a multilateral trading system (MTF).
a wholly owned subsidiary of Knight/Trimark Group and the leading OTC market maker in all NYSE- and AMEX-listed equity securities -- the Third Market -- has acquired certain assets from D.
Foreign insurers and life subsidiaries of non-life insurers have been aggressive in gaining more market presence, especially in the third market sector.
VSE's Third Market has less stringent listing rules than the regulated Official Market or Second Regulated Market and much lower fees.
Cantor Fitzgerald's Institutional Equities Division is one of the largest third market trading and execution firms on Wall Street, with global client base of over 4,000 major institutional investors and corporations.
The shares will begin trading on the third market segment of the Frankfurt Stock Exchange (www.
As a result of the improvement in Mexico's country risk, reflected in the recent upgrade to investment grade, Standard & Poor's expects Mexico to enter into the third market stage of Latin American securitization in 2002.
Jefferies was a pioneer in the areas of block trading, the third market, after hours trading, and other market innovations.
OTCBB:ASTV), with its principal office in Hong Kong, begins trading of its shares on the Berlin Stock Exchange's booming Third Market Segment.
It was announced today that the company has been granted permission form the Deutsche Boerse AG and has begun trading on the Third Market Segment of the Frankfurt Stock Exchange.
The third market, in which Informix has already been successful, involves ESRI Geographic Information Systems, where there is a strong and growing interest in purchasing technology for storing and managing spatial data and geospatial images.