The trading activity in a securities exchange is typically organized in one of the following two ways: Call Markets In a call market the market is called at a certain time and place and all the traders trade at that time. The time when the market is called is called a trading session. Due to […]
Secondary Securities Market
Trade Execution Systems
In the securities markets there are different systems used to match the orders of different buyers and sellers. These are called the execution mechanisms in the market, and the markets are classified based on the execution system that they use. There are three main types of markets: quote-driven markets, order-driven markets, and brokered markets. Some […]
Quote-driven Dealers Market
Quote-driven markets are the most commonly used execution systems for markets such as bonds, currencies and commodities. They are referred to as a dealers market because each trade is executed through a dealer. The dealers, working with investment banks, commercial banks, and broker-dealers, provide quotes for different instruments and all customers need to trade through […]