@sidneysnow
Execution strategy must carefully weigh on-exchange limit orders versus OTC trades. Exchange orders provide transparency and potentially better pricing but risk signaling intentions and causing adverse price movement. OTC transactions reduce information leakage and market impact but may introduce counterparty risk and wider spreads. Decision-making should account for trade size, urgency, and prevailing liquidity conditions. A hybrid approach is often optimal: use exchanges for smaller, less sensitive orders and OTC desks for block trades. Monitoring settlement reliability and adjusting execution algorithms improves trade efficiency while safeguarding against information leakage.
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