Risk of Over-the-counter Transactions / Grey Market Trading
Before trading, you must understand the nature of the over-the-counter(“OTC”) transaction, the trading facilities and the level of risk you can afford. If in doubt, you should seek independent professional advice. OTC transactions are subject to risks, including the credit and default risks of other counterparties, and the risk of securities not being listed on the Exchange. OTC securities may have lower liquidities and higher price volatilities than securities traded on the Exchanges. OTC transactions are not guaranteed to be settled and you are liable for any losses and expenses resulting from the settlement default by you and/or your counterparty. The prices of OTC securities may differ materially from their market opening or trading prices during the regular market time after they are listed on the Exchange. The price of a security shown in an OTC transaction may not reflect the price of the same security traded in other automated trading systems operating at the same time. The OTC market is not regulated by the Exchange. Unless the relevant transactions are officially recorded on the Exchange's trading system after the security is listed on the Exchange, they are not covered by the investor compensation fund.