Do Quote-Driven Markets provide Price Discovery?作者: strikethree 时间: 2011-7-11 19:00
Yes of course. Price discovery is when buyers and sellers interact with each other to adjust prices. Only in ECN (crossing networks) there is no price discovery because the execution price is the mid-point of bid/ask and prices are established only at certain times during the day,作者: thommo77 时间: 2011-7-11 19:00
mik82 Wrote:
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> Yes of course. Price discovery is when buyers and
> sellers interact with each other to adjust prices.
> Only in ECN (crossing networks) there is no price
> discovery because the execution price is the
> mid-point of bid/ask and prices are established
> only at certain times during the day,
Be careful with the term ECN, ECN actually stands for (per CFAI) Electronic COMMUNICATIONS Network, which DOES provide price dicovery.
However, you are correct that Electronic CROSSING networks do NOT provide price discovery because they use the prices attained from other markets.作者: canadiananalyst 时间: 2011-7-11 19:00
Yeah I have noticed the potential trick there (crossing vs communications networks)
