The second question about any derivative is where it lives, and the answer follows five dimensions that move together more often than not.
Start with standardisation, because it drives most of the rest. An exchange writes the contract once, so the multiplier, the tick, the lot, the expiry date and the settlement style sit in a published specification and are identical for everyone. An over-the-counter trade is drafted between two parties under a master agreement, so the notional, the dates and the terms fit the exposure exactly. A borrower whose loan resets on the eleventh of February cannot hedge it precisely with a contract that expires on the third Friday.
Standardisation is what makes the second dimension possible. Your counterparty on an exchange is the clearing house, no matter who took the other side of the trade. Over the counter it is a named bank, and that bank's credit is part of your position rather than a detail of settlement.
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Clearing follows from both. Exchange trades are novated to a central counterparty at the moment of the match, and over-the-counter trades in the standardised interest-rate and index-credit products are also cleared now, following the post-2009 reforms. Genuinely bespoke trades remain bilateral, with collateral posted under the credit-support annex.
The fourth dimension is margin, and the difference here is between rule and agreement. Exchange positions are margined daily by rule. Bilateral positions are collateralised by agreement, and the agreement can contain thresholds, minimum transfer amounts and rating triggers that a cleared position never has.
Last is transparency. Exchange prices and volumes are published continuously; over-the-counter prices are quoted between the parties, and post-trade reporting to a trade repository is a regulatory obligation rather than a live screen.
The listed instruments in the derivatives branch sit on both sides of that line. Index and single-stock futures and options are exchange-traded. Caps, floors, swaptions, currency swaps and equity swaps are over-the-counter, because their whole purpose is to match a cash flow schedule nobody else has. That is why the pricing here starts from a discount curve you build rather than a screen you read.