RT Journal Article
SR Electronic
T1 What Is a Quote?
JF The Journal of Trading
FD Institutional Investor Journals
SP 10
OP 16
DO 10.3905/JOT.2010.5.2.010
VO 5
IS 2
A1 Maureen O’Hara
YR 2010
UL https://pm-research.com/content/5/2/10.abstract
AB Technological advances that give rise to myriad new trading strategies and practices also have important implications for basic concepts such as quotes. Because quotes determine the NBBO (the National Best Bid or Offer), the issue of what is and is not a quote is important. I argue that there are now a variety of circumstances in which what is or should be a quote is not clear. These circumstances arise because in electronic markets both quotes and orders can be moved instantaneously, setting the stage for potential abuses. I provide several examples to illustrate these problems and offer some thoughts on the question: what is a quote?TOPICS: Exchanges/markets/clearinghouses, big data/machine learning