Andreas Park
Retail
Institutional
Pro-Traders
Exchanges
Wholesellers
Dark pools
Broker Internalizations
Exchanges
Wholesellers
Dark pools
Broker Internalizations
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Retail
Institutional
Pro-Traders
Rule: must send to exchange with best price
Exchange
Wholeseller
market order
limit order
In Europe: no best price obligation
Exchange
Dark pools
Type 2: "borrow" broker-dealer system
Type 1: licenced broker-dealer
risk control
You commonly don't access the market directly.
Brokers take many decisions but they are bound by regulations.
Critical: markets are formally linked by best-price rules.
A glimpse of overall infrastructure
Sue wants to sell ABX
Bob wants to buy ABX
sell order
buy order
Clearing House
Stock Exchange
Broker
Broker
3rd party tech
custodian
custodian
record beneficial ownership
central bank for payment
Retail, Institutions, and Pro-Traders are indistiguishable
not clear whether and which institutions are active
Exchanges
Dark pools
Smart On-chain contracts
Exchanges
Smart Contract
Order Driven
Market Maker
Exchanges
Smart On-chain contracts
Exchange
Internalizer
Wholeseller
Darkpool
Investor
Venue
Broker
Settlement
Investor
Venue
Settlement
On chain