In MMB trading, what is the result when a Quote is matched against a Limit order?

In MMB trading, what is the result when a Quote is matched against a Limit order?

• A. RP
• B. Limit
• C. Quote
• D. Limit, if > and older

Answer: (C)

In MMB trading, quotes represent the liquidity a market maker is offering at a specific price, while limit orders are resting orders with a price constraint. When a Quote meets a Limit order, the trade can occur, but the Quote remains the instrument that is displayed for ongoing liquidity. In other words, the matching process results in a Quote being the visible outcome, reflecting that there is still a quote on the book (possibly with reduced size) after the trade. For example, a buy Quote at a certain price with a given size trades against a selling limit order at that price. The transaction happens, and if there’s remaining size, the Quote stays on the book to show ongoing availability. That’s why the result of this match is the Quote. The other options don’t fit because the interaction does not inherently convert the result into a different type like a Limit, nor does it produce a separate RP unless specified by the system’s rules.

In MMB trading, quotes represent the liquidity a market maker is offering at a specific price, while limit orders are resting orders with a price constraint. When a Quote meets a Limit order, the trade can occur, but the Quote remains the instrument that is displayed for ongoing liquidity. In other words, the matching process results in a Quote being the visible outcome, reflecting that there is still a quote on the book (possibly with reduced size) after the trade.

For example, a buy Quote at a certain price with a given size trades against a selling limit order at that price. The transaction happens, and if there’s remaining size, the Quote stays on the book to show ongoing availability. That’s why the result of this match is the Quote.

The other options don’t fit because the interaction does not inherently convert the result into a different type like a Limit, nor does it produce a separate RP unless specified by the system’s rules.