Major Trading Systems

Call (periodic) auction (板寄せ)

selling stocks by bid at intervals throughout the day. The orders are stored for execution at a single market clearing price.

Continuous auction (ざら場)

Buyers enter competitive bids and sellers place competitive offers simultaneously. Continuous, since orders are executed upon arrival.

Dealership market

Trading occur between principals buying and selling to their own accounts. Firm price quotations are available prior to order submission.

Notes

• Auction markets are concentrated and order-driven
• Dealership markets are fragmented and quote-driven

Examples

• NYSE/TSE: opens with a periodic auction market and then switches to a continuous auction.
• NASDAQ/International Stock Exchange (London): quote-driven systems (continuous dealership market).