So the loophole: in its treatise on derivatives, Congress left out a market: OTC equity options.
FORBES: The $5 Trillion Loophole
2.
Due to a building emergency (power issues), Knight Capital Americas is asking you to seek an alternate destination for the order handling and execution of your OTC, Options and Listed orders until further notice.
FORBES: Sandy Hits Electronic Markets: Power Outages Force Knight Capital To Shut Down Equity Trading Operations
3.
Trades are made in cash instruments, futures, forwards, options, structures, special purpose vehicles, collateralized products and can be OTC or exchange based.