exchangeoperated
Exchangeoperated refers to markets, trading platforms, or financial instruments that are operated by a formal exchange, meaning the exchange provides the infrastructure for listing, trading, clearing, and settlement. In an exchange-operated model, the exchange is the primary organizer and overseer of the market, as opposed to bilateral or over-the-counter arrangements where trades occur directly between participants or on non-exchange platforms.
Key characteristics include a centralized venue with standard contracts, a formal order-matching engine, and typically central
The scope spans multiple asset classes, including equities, futures, options, and some commodities, when these instruments
Advantages of exchange-operated markets include improved liquidity, enhanced price transparency, standardized contracts, and robust risk management
See also: over-the-counter markets, central clearing, price discovery, listed derivatives, and market infrastructure.