A market structure1 is said to be order driven when the market price is determined by buy or sell orders submitted by brokers or dealers to a centralised location, where orders are matched and executed. The bidding mechanism prevailing in order driven markets is typically the auction mechanism. The interactions between the market participants are regulated by primary and secondary priority rules, normally set out by the market authority. If the price cannot be determined on the basis of a primary priority rule, then a secondary rule should apply. The opposite of an order driven market is a quote driven market.
1Market structure is defined as the mechanism by which buyers and sellers interact to determine price and quantities.

Editor: Bianca GIANNINI
© 2010 ASSONEB