orderly market

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Orderly Market

1. A market in which supply and demand for a product or security are roughly equal. Because of this, orderly markets tend not to be volatile and prices tend to reflect the true value of the product or security. It is possible for orderly markets to exist for some products and securities while volatile markets prevail in others. However, major orderliness or volatility tend to spread into the markets as a whole. See also: Buyer's market, Seller's market, Panic selling.

2. An exchange in which bid prices and ask prices are provided consistently, and in which there are few price fluctuations and no large ones. The presence of an orderly market on an exchange is often due to both diligence on the part of market specialists and the existence of an orderly market in the above sense.

orderly market

A market in which bid and ask prices are continually provided and price changes between transactions are relatively small. It is the specialist's job to maintain an orderly market in assigned securities on the floor of an exchange.
References in periodicals archive ?
The new rules ensure safe and orderly markets and financial stability through the introduction of trading controls, an appropriate liquidity provision obligation for high-frequency traders pursuing market-making strategies and by regulating the provision of direct electronic market access.
The Nasdaq's first responsibility was to assure "fair and orderly markets," Nasdaq chief executive Robert Greifeld said on Friday on Fox Business Network, and exchange officials worked first to understand and fix the problem and then to communicate with the securities industry to ensure a smooth restart.
While there is certainly some trading risk for our firm, clearly everyone involved is aligned around a common desire to maintain orderly markets, continue servicing issuers and investors, and support Knight as they return to normal operations," Todd Abrahall, head of Getco's designated market-making unit, had told The Wall Street Journal last week.
The FSA's Margaret Cole said: "This fine demonstrates our commitment to clean and orderly markets.
The CFTC statutory authority directs it to promote and protect fair and orderly markets, and to protect against manipulation and excessive speculation.
Sally Dewar, managing director of wholesale and institutional markets at the FSA, said: "We believe that these proposals are the right measures for maintaining orderly markets.
With the same objective, regulators should review their authority to temporarily liberalize or suspend various regulations when such actions could contribute to the restoration of orderly markets or if compliance with such regulations may be unusually costly during a temporary disruption.
Investors need to be confident that they a redealing in clean and orderly markets,'' theFSA said in a statement.
Under these circumstances, plan fiduciaries may in good faith find it necessary and prudent to take extraordinary steps in order to safeguard plan assets and to facilitate the return to orderly markets.
It will provide a mechanism for long-term cooperation between the two exchanges and assist in the maintenance of orderly markets in securities in each country.
ECNs will provide some amount of liquidity in calm and orderly markets, cherry-picking the easy money to be made on crossing orders.
Nasdaq boasted that, although pressed by the extreme activity, its systems were able to meet the challenge of a large volume surge while still maintaining orderly markets and immediacy of execution for all investors.