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Order-driven market
 

 

An asset market where the role of intermediaries is matching buy and sell orders. In such a market orders to buy at given prices or below, and to sell at given prices or above, are accumulated until a set time, for example noon daily. A market clearing price is then determined, and orders consistent with this price are executed. This is contrasted with a quote-driven market, where the role of intermediaries is to act as market-makers, offering to buy and sell at stated prices, up to some quantity limit, and transactions can take place at any time when the market is open.

Reference: Oxford Press Dictonary of Economics, 5th edt.