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 ?
Unlike the quote-driven market, Smart Exchange is an order-driven market, which means a share is placed into an appropriate price line, making the shares turnover more dynamic comparing to its competitors.
Contrarily to the American stock market, a quote-driven market, the TSE is an order-driven market.
On the Tunisian market this result is not as evident as these obtained on other markets especially on quote-driven markets.