Quote Driven

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Quote Driven

Describing an exchange where the bid-ask spread is determined by quotes given by dealers or market makers with the duty to maintain a liquid market. A quote driven market contrasts with an order driven market, where the bid-ask spread is determined by orders directly by investors. A quote driven market is also called a price driven market and is usually on an electronic exchange.
References in periodicals archive ?
The BATS Options platform is positioned to help participants navigate the transition from a quote driven market to an order driven one," said Jeromee Johnson, vice president, market development and head of BATS Options.
Jiway Limited is an electronic order and quote driven market providing a single access point to shares from the UK, Sweden, France, US, Germany, Italy and The Netherlands, with guaranteed liquidity and prices no worse than the underlying exchange.