Matching System
The Chicago Stock Exchange’s (CHX) Matching System trading platform has been designed for full electronic trade matching and constructed to provide fully electronic cost efficient executions. CHX’s trading platform offered US broker-dealers access to a fair, open and neutral market place with diverse order flow from retail brokers, CHX Institutional Brokers, NASD market makers and CHX market makers.
The new platform is scalable, reliable and designed for the messaging rates of today’s equity trading environment. The new CHX Matching System performance characteristics should exceed the requirements for classification as an automated market under Regulation NMS.
Order-sending participants may route to the CHX Matching System by using the FIX and CMS protocols via existing order-sending participant or vendor connections.
Upon receipt of an order, the CHX Order Management System (OMS) will validate and route orders to the appropriate matching engine instance. Several matching instances will each handle processing for a set of issue symbols, which can be reallocated among matching engines to re-grade processing loads.
Once the matching engine receives an order, the order’s price is compared with resting limit orders in the book. If a match can be consummated at a price within the NBBO then the orders will be executed.
If the execution would occur at a price outside the NBBO then no execution will occur and the inbound order will be rejected. If no match is available, then an inbound order will be placed in the book and immediately quoted. If the order’s price would lock or cross the NBBO then the order will be rejected.
Orders resting in the book will be matched in price - time priority and according to the ranking. The Matching System matches orders on a share for share basis and inbound odd lot orders can match at prices outside the NBBO.
Read more about this topic: Chicago Stock Exchange
Famous quotes containing the word system:
“Columbus stood in his age as the pioneer of progress and enlightenment. The system of universal education is in our age the most prominent and salutary feature of the spirit of enlightenment, and it is peculiarly appropriate that the schools be made by the people the center of the day’s demonstration. Let the national flag float over every schoolhouse in the country and the exercises be such as shall impress upon our youth the patriotic duties of American citizenship.”
—Benjamin Harrison (1833–1901)