What are electronic trading protocols?
Electronic trading is a method of securities trading, as well as the trading of foreign exchange and financial derivatives through electronic channels. The electronic trading protocols (ETP) were initiated to maintain thorough communication at every stage of a transaction.
Where have you heard about electronic trading protocols?
If you’ve ever been involved in electronic trading, you’ll likely have experienced electronic trading protocols. They are used by the NYSE, the London Stock Exchange, NASDAQ, the Montreal Exchange, Euronext, the Tokyo Stock Exchange and many more institutions.
What you need to know about electronic trading protocols.
There are three electronic trading protocols that are used globally – these are:
- Native Order Flow
- Fixed Order Flow
- Market Data
These three electronic trading protocols have been used widely and have become an accepted part of electronic trading. While many exchanges develop their own trading software, it is important to remember that all have to adhere to the protocols.
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