Integrating Electronic Market Models Problems of and Solutions for Parallel Markets

Electronic markets facilitate the trade of various products between individual traders. Both, the products’ individual characteristics and the market participants preferences make specific demands on the market model. This results in trading identical products in different markets. The concept of combining market models allows the traders to participate in many markets parallel and/or sequential, and therefore, provides more options for the traders without splitting liquidity between many markets. In this paper market combinations are presented and discussed. Additionally, we introduce the concept of the intelligent order leading to an integration of the affected markets. The order of an investor can exist in multiple markets synchronously but the execution of one order is restricted to exactly one market. In the context of parallel markets, arising problems like the symmetric and asymmetric deadlock scenario are discussed. To solve these problems we study market phase and introduce stringent and non-stringent phases.