A type of gaming in which a trader (known as the gamer) executes small orders to manipulate the public exchange mid-quote that a crossing network uses to get a price at which its internal orders are crossed. For example, if the best bid and offer are $50.11 and $50.13, respectively, a small bid placed at $50.12 will change calculations of the mid-quote and will impact successive bids. That is, if a large order placed in the network is matched with a counterparty for a mid-quote cross, the cross will take place at the new, displaced (manipulated) mid-quote.
February 20, 2024
