Glossary

A

Agency Dark Pool

Operated typically by independent agency brokers, agency dark pools attempt to cross various client orders that flow through the broker without principle interest in the trade.

ATS

Alternative trading system, execution service provided to buy-side institutions.

Automated Trading

Execution of a trade strategy without human intervention.

B

Block Trading Dark Pools

Seek to provide a trading environment in which large orders can be crossed with minimum market impact.

C

CEP Engine

Complex Event Process, technology for low-latency filtering, correlating, aggregating, and computing on real world event data.

Circuit Breakers

Procedure to stop the trading of a security or index at a certain percentage for the previous day's closing price.

Colocation

The physical location of an actual trading model at or near data centers hosting exchange matching engines.

Commercial Hedgers

Firms who use the futures market to hedge their interest rate, currency, or commodity risk.

Consortium Dark Pool

Broker/dealer owned dark pool.

Co-opetition

A hybrid competitive reality in which market participants both, compete and cooperate with one another for market share.

Counterparty

Firm who takes the opposite side of a transaction.

D

Dark Pool

Execution venues that do not provide public quotes.

Decimalization

The process of changing the prices that securities trade from fractions to decimals.

Depth of Book

Buy and sell prices that are below or above best buy or sell price.

Direct ...

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