Corpus ID: 13969809

Matching Algorithms of International Exchanges

@inproceedings{Janecek2007MatchingAO,
  title={Matching Algorithms of International Exchanges},
  author={Karel Janecek and Martin Kabrhel},
  year={2007}
}
The aim of this paper is to analyze different kinds of trade matching algorithms. The matching (or trade allocation) algorithm is an important part of an exchange trading mechanism. We begin with an overview of the matching algorithms currently used at the biggest world derivatives exchanges. Then we analyze the impact of these algorithms on the strategy of a rational trader, and derive implications of the induced trader’s behavior for the overall market efficiency. Our special focus is on the… Expand
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