central limit order book


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Central Limit Order Book

A proposed database for all limit orders received by specialists and market makers throughout the United States. Such a system would allow limit orders to be fulfilled immediately or later, depending on the nature of the order, on any American exchange. The SEC proposed the establishment of CLOB, but it never occurred because most exchanges believe that such as a database would cause them to lose trading volume.
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central limit order book (CLOB)

A central system that contains securities limit orders received from specialists and market makers. Such a system consolidates limit orders in a central location and bridges the gap in establishing a national market system. A hard CLOB executes orders immediately; a soft CLOB provides data to facilitate trading but does not include automatic executions. Establishment of a CLOB has generally been opposed by securities exchanges because they would stand to lose significant volume to such a system.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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Rather, he says, they'll probably be forced to link to the rest of the market - thus, a central limit order book. Such a tool would let investors, both individual and institutional, view quotes of and execute trades against the best bid or offer among all of the ECNs and market makers.
These include halving the headline equity market trade execution fee; the launch of three new trade platforms - Volume Match, a block trading service, Trade Match, which caters for ASX's existing product areas such as equities, and a streamlined parallel central limit order book, Pure Match, aimed at high frequency traders; an imminent upgrade to the futures trading platform; and plans to reduce latency to under 500 microseconds with its new ASX Trade platform, supplied by global exchange group Nasdaq OMX expected to launch in November 2010.
At launch, functionality will include a central limit order book, with request for quote following shortly afterward.
BGC's technology infrastructure includes fully-compliant execution methodologies such as anonymous central limit order book, name disclosed request for quote system, intra-day electronic auctions, indications of interest, and voice managed orders for blocks and non-blocks.
Over the past three years, since passage of the Dodd-Frank Act, MarketAxess has expanded its functionality to offer a comprehensive range of trading protocols including request for quote/market (RFQ/RFM), click-to-trade and a central limit order book for CDS trading.