Market infrastructures. This page is brought up to you by ISIFI Conseil, Bank and Finance Consultants In the world of securities, market infrastructures are the systems that ensure the good course of the following operations : Trading in market places Clearing of the transactions Settlement through Central Securities Depositories & Cash Settlement Centre. The market place is the place in which a market operates, and offer and demand meet. It can be an actual or metaphorical place whose role is to provide participants with a secured transaction mechanism The following table highlights the main quotation places, as well as their managing institutions.
The Clearing process guarantees the consistent course of operations. It is called “NOVATION”. Technically, it is impossible for a clearing house to go bankrupt. Where 100 buy-sell between two stakeholders would have created 100 transactions, a single but netted transaction is sent to the CSD. NB : Do not confuse Depository and Central Securities Depository.
Understanding Order Execution. As you can see your broker has different motives for directing orders to specific places. Obviously, they may be more inclined to internalize an order to profit on the spread or send an order to a regional exchange or willing third market maker and receive payment for order flow. The choice the broker makes can affect your bottom line. However, as we explore below we will see some of the safeguards in place to limit any unscrupulous broker activity when executing trades.Broker's Obligations By law, brokers are obligated to give each of their investors the best possible order execution. There is, however, debate over whether this happens, or if brokers are routing the orders for other reasons, like the additional revenue streams we outlined above. Let's say, for example, you want to buy 1,000 shares of the TSJ Sports Conglomerate, which is selling at the current price of $40.
Is Order Execution Important? Memoire_Global_macro.doc. Memoire_Global_macro.doc. Mieux comprendre les fonds d'investissement - Banque de Luxembourg.