Market microstructure

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Market microstructure

The functional setup of a market.

Market Microstructure

The way a market or exchange functions under a given set of rules. The study of market microstructure deals with how well or poorly an exchange's rules encourage efficient trading. For example, one who studies market microstructure might conduct research into the similarities and differences in exchanges that have open outcry trading and those that are exclusively electronic.
References in periodicals archive ?
While there has been progress in establishing bond market microstructures in the region, there continue to be important tasks in the development of bond markets.
A comparison between post-MiFID Europe and the Reg NMS-regulated US market microstructures may help highlight the reasons for such a difference.
These studies are important because they have several implications for market microstructures.
Finally they must not curtail product and service evolution in response to market infrastructure changes and new academic and practitioner research into market microstructures.
Without a strong commitment to understanding how the market microstructures are changing, I think they are inevitably opening themselves up to potential problems, not least: how do you show best execution?