Market Microstructure

What is Market Microstructure?

Market Microstructure meaning Refers to the means by which individual trades take place. An example of a broad class of market microstructures is an order book. Another such class covers the markets associated with most OTC derivative trading pre-Dodd-Frank Act in which transactions were negotiated bilaterally over the phone.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary