market architecture of selected stock exchanges in ... - Gilles Daniel
market architecture of selected stock exchanges in ... - Gilles Daniel
market architecture of selected stock exchanges in ... - Gilles Daniel
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40Figure 11: Order Book <strong>in</strong> an Order-Driven MarketSource: www.iii.co.uk/, 27/02/2006Modern limit order books use computer technology for order entry and <strong>in</strong>terfaces toreport<strong>in</strong>g and clear<strong>in</strong>g systems. They are categorized by how much <strong>in</strong>formation theyshow to the public: An open order book displays the prices and quantities <strong>of</strong> all the posted orders <strong>in</strong>the book on a screen, thus, full <strong>market</strong> depth can be viewed. A partially closed order book displays the two or three highest buy and lowest sellorders. A closed order book does not show the quotes to all <strong>market</strong> participants. The orderbook is visible only to <strong>market</strong> makers or specialist.Generally, the order book is anonymous, mean<strong>in</strong>g that the trad<strong>in</strong>g parties do not getto know their counterparties.The order book, whether it is open or closed, conta<strong>in</strong>s all buy and sell orders. Buy