Why Might a Pool Operator Prefer an Over-the-Counter (OTC) Derivative Contract over an Exchange-Traded One?

A pool operator might prefer an OTC derivative because it allows for customization of the contract's terms, such as the size, expiration date, and specific underlying asset, to perfectly match the pool's unique expected production schedule and risk profile. OTC contracts also offer greater privacy, as the transaction details are not publicly visible on an exchange, though they carry higher counterparty risk.