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Home > QFINANCE Dictionary > Definition of quote-driven system

Definition of

quote-driven system

Markets

system fixing initial stock price by quotes a price system on a stock exchange in which prices are generated by dealers' and market makers' quotes before market forces come into play and prices are determined by the interaction of supply and demand. The London Stock Exchange's dealing system, as well as those of many over-the-counter markets, have quote-driven systems.

Related definitions of "quote-driven system"

Definitions of ’quote-driven system’ and meaning of ’quote-driven system’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’quote-driven system’ and other financial terms with our online QFINANCE Financial Dictionary.

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