The derivative security that accounts for most of the activity in the OTC market is:

Name: The derivative security that accounts for most of the activity in the OTC market is:
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Question

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Swaps account for the majority of activity in the Over-the-Counter (OTC) market. They are customized contracts between two parties to exchange cash flows or other financial instruments and are not traded on standardized exchanges, making them a significant part of the OTC derivatives market.

The Derivative Security That Accounts for Most of the Activity