Common use of Over-the-Counter Transactions Clause in Contracts

Over-the-Counter Transactions. On all over-the-counter transactions for introduced accounts, Broker shall furnish First Clearing with the names of the respective purchasing and selling broker/dealers (except as otherwise provided in this Paragraph), the names of the purchasing and selling customers, and the purchase and sale prices and any other information required by First Clearing. Should Broker give an order in an over-the-counter security to First Clearing and the counter party is left to First Clearing’s discretion, First Clearing shall assume the responsibility of paying Broker that which the counter party has failed to pay pursuant to the over-the-counter transaction In case Broker executes its own over-the-counter order or designates the counter party, it shall be understood that in the event the over-the-counter dealer with whom Broker dealt or whom it designated fails to live up to its part of the transaction, Broker shall reimburse First Clearing for any and all losses sustained thereby.