Call Market Trading: History, Economics, and Regulation

  • Benn Steil
Part of the The New York University Salomon Center Series on Financial Markets and Institutions book series (SALO, volume 7)


Coming on the back of well over a century’s worth of development in continuous trading of securities, the relatively recent arrival of electronic call market trading is a shock to the system. Traders appear reluctant to abandon the drive for the ever more “immediate” trade, even when it is clear that immediacy is costly and often unnecessary.1 Regulators are hard-pressed to adapt long-established market structure rules to systems that generate trades in unfamiliar ways. Similar functioning systems are subject to very dissimilar regulation: some are regulated as “exchanges” (AZX),2 some as “facilities” of an exchange (Bond Connect, and the defunct Optimark and Chicago Match), and some as “brokers” (Instinet and Posit crosses). Finally, call markets pose new and complex challenges for researchers. The interaction of continuous time and discrete trading environments is difficult to analyze, particularly when critical concepts such as “liquidity” and “immediacy” remain murky in economic theory.


Trading Cost Dealer Market Order Flow Auction Market Trading Mechanism 
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© Springer Science+Business Media New York. Boston 2001

Authors and Affiliations

  • Benn Steil

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