In MMB trading, what is the rule for a Quote vs Quote match?

In MMB trading, what is the rule for a Quote vs Quote match?

• A. RP
• B. as for limit
• C. Quote
• D. Limit

Answer: (B)

In a cross between two quotes, the trade is executed as if it were a limit-order match. This “as for limit” rule means the execution takes place at the price of the resting, or passive, quote. It protects the resting quote by ensuring the trade happens at a price the resting party has already stated, rather than at a price forced by the aggressor. So when two quotes cross, the match uses the limit price associated with the passive side, rather than creating a market-like fill.

In a cross between two quotes, the trade is executed as if it were a limit-order match. This “as for limit” rule means the execution takes place at the price of the resting, or passive, quote. It protects the resting quote by ensuring the trade happens at a price the resting party has already stated, rather than at a price forced by the aggressor. So when two quotes cross, the match uses the limit price associated with the passive side, rather than creating a market-like fill.