A market in which orders placed by all traders are accumulated and crossed based on the rules of order precedence. These rules determine the way orders are arranged. Prices of securities are determined through the publication of offers to buy and sell specific amounts, which are communicated via orders. Buyers and sellers can avoid using market makers or dealers by directly executing with each other, but all trades are subject to the order precedence rules established by the exchange.

This market comes in two main types: periodic auction market and continuous auction market.