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Quantitative Finance · शब्दावली

Auto-quoting क्या है?

Definition 22.1 Market Making and High-Frequency Trading · अध्याय 22 — Bond and ETF Request-for-Quote Market Making

Auto-quoting is a dealer’s automatic response to requests for quote: a system that prices each request from its models and inventory, decides whether and at what level to answer, and sends the answer without a trader, within limits set by the desk and with requests outside them routed to a person.

A request for quote on a dealer-to-client platform: the client asks five dealers at once; each prices the bond from its own model and answers within the time limit; the client hits the best bid if it is acceptable; the platform tells the winner the cover, the second-best bid. Source: Book 2, chapter 22; this chapter.
Figure 22.1. A request for quote on a dealer-to-client platform: the client asks five dealers at once; each prices the bond from its own model and answers within the time limit; the client hits the best bid if it is acceptable; the platform tells the winner the cover, the second-best bid. Source: Book 2, chapter 22; this chapter.
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