Frequently Asked Questions

Please find below some FAQs
about OTC Direct.

Frequently Asked Questions

Which products can I trade on OTC Direct?

Initially, the following products will be available to trade on OTC Direct:

- RINs
- CA LCFS Credits
- OR CFP Credits
- Physical Ethanol
- Financial Ethanol

We plan to add more products in the near future.

What is OPIS Trade Link?

OPIS Trade Link is an electronic price assessment that operates on OTC Direct. You can easily identify OPIS Trade Link products as they have "(OPIS)" in the product name e.g. Ethanol D6 RIN V20 (OPIS)

Are my Bids and Offers anonymous?

Yes, all bids and offers are anonymous. A counterparty is only revealed to the other side when a bid or offer is traded.

How does OTC Direct control which counterparties I can trade with?

OTC Direct has a sophisticated bilateral counterparty matrix that allows a designated user at your firm to manage which counterparties you can trade with. You are in complete control.

How much does it cost to trade on OTC Direct?

OTC Direct charges a transaction fee for each trade. There is no monthly subscription fee for active traders on OTC Direct. OTC Direct invoices on a monthly basis.

What is P2P trading?

P2P stands for Peer-to-Peer. This is a direct trade between two trading firms without any broker involvement. All trades on the "house" OTC Direct venue are P2P.

What is a "Venue" on OTC Direct?

A "venue" on OTC Direct is a separate liquidity pool. OTC Direct aggregates different venues to create a single view of market liquidity. At launch, there are two venues on OTC Direct:

- OTC Direct Venue - this is the default "house" venue that supports P2P trading only.

- Blackstar Markets Venue - this is a venue that allows both broker-assisted and P2P trading.

Blackstar Markets have no visibility of the OTC Direct Venue. Only trading firms can see the aggregated view of all venues.

What does Initiator mean?

If you input a Bid or Offer on OTC Direct that is traded by another counterparty, then your firm is the "Initiator" on the trade. If you trade another firm's Bid or Offer, then you are not the Initiator.

What does All or None mean?

All or None is a flag on a Bid of Offer that means the quantity cannot be partially traded. Only the whole quantity on the Bid or Offer can be traded. All or None prices have an asterisk "*" next to the quantity amount.