A couple of years ago we tried to address the community’s thirst for market structure knowledge by matching festive drinks to trade categories. At this festive time of year we are all hungry (and thirsty) for market structure knowledge as well as a festive feast.
So, here’s a guide to merry market mechanisms:
- Opening auction. Smoked salmon blinis, an appetizer in advance of the main event. Be careful not to overindulge as it can leave you badly weighted for the remainder of the day
- Lit Continuous. Turkey, universally accepted as the main ingredient of the day. At risk of being overextended into the evening and can dry up at times
- Periodic/Frequent Batch Auctions. Pigs in blankets, tasty little morsels but rarely satisfying
- Dark. Gravy, non-transparent liquidity, often adding a little something extra
- Bilateral trading. Brussel sprouts, not to everyone’s taste, loved and loathed in equal measure
- Closing Auction. Trifle, this is the time when despite having had your fill during the main course, the temptation to carry on with something extra is too difficult to resist….until the next morning.
And the condiments that make the markets merry:
- SI. Bread sauce, available throughout the main course. Generally seen as additive without people really noticing it is there
- Off-Book (On-Exchange). Roast potatoes, can be huge with the best ones not being shared around
- OTC. Parsnips, no one really knows why they are there or how to describe them properly but every year they keep appearing.
All washed down with a nice cup of XY tea!
