Hybrid market

What is a hybrid market?

This is a securities exchange that allows brokers to choose between the traditional floor broker system and a newer, quicker electronic system.

Where have you heard about hybrid markets?

The most famous example is the New York Stock Exchange. In 2007, it allowed almost all of its listed stocks to be made available for electronic trading, as well as through the traditional floor broker system.

What you need to know about hybrid markets.

Hybrid trading systems are used at most exchanges that still operate live auction trading. The main advantage of electronic trading is speed. An order placed electronically takes under a second to execute, while going through a traditional floor broker trade can take an average of around nine seconds. However, an advantage of the live auction method is that it involves human experts, who can provide specialist judgement.

Find out more about hybrid market.

Check out our guide to Intermarket trading system to learn more about how trading floors are connected electronically.