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 ?
BOX 2 Order-driven versus quote-driven markets Derivatives trading may take place in "order-driven," "quote-driven," or "hybrid" trading environments.
On the Tunisian market this result is not as evident as these obtained on other markets especially on quote-driven markets. In fact, LOT obtained that the small size firms transaction costs are twice the transaction costs For the high size firms on the AMEX and the NYSE for the period 1963-1990.
Contrarily to the American stock market, a quote-driven market, the TSE is an order-driven market.