Market Overview

Figure A-1 shows an overview of how the example stock-trading market works.

Services and Collaboration

The following sections list each entity with the primary service they publish along with the primary consumers of that service (in parenthesis).

Asset Manager

The following are the specifics of the Asset Manager.

Settle Trade (Depository)

This is where a participant is notified by the Depository that a trade has settled;this includes the settlement details.

public void SettleTrade ( Settlement settlement );

Market Maker

The following are the specifics of the Market Maker.

Trade Security (Exchange)

This is where a participant is notified that another participant has "hit" either a bid or an asking price on a listed security based upon the published quote.

public Execution TradeSecurity ( Trade trade );

Settle Trade (Depository)

This is where a participant is notified by the Depository that a trade has settled; this includes the settlement details.

public void SettleTrade ( Settlement settlement );

Exchange

The following are the specifics of the Exchange.

Publish Quote (Market Maker)

This is the process where a Market Maker announces what their bid is and asks for a particular security.

public void PublishQuote ( Quote quote );

Get Quote (Asset Manager)

This is where an exchange provides the announced bid. We use this to inquire about the listed securities by the participants.

public Quote GetQuote ( String ticker );

Trade Security (Asset Manager)

This is where a participant chooses to buy or sell, based upon an asking or bid quote, respectively, as published on the Exchange.

public Execution TradeSecurity ( Trade trade );

Depository

The following are the specifics of the Depository.

Execute Trade (Exchange)

This is when a trade occurs on an Exchange, and the Depository is notified in orderto update appropriate positions, both cash and security, and provide notification to the respective participants through settlement reporting.

public void ExecuteTrade ( Execution execution );

Get Position(Asset Manager, Market Maker)

This is where a participant requests the position on either a security position or a cash position. Positions can be reported in either positive (long) or negative (short) numbers, but fractional shares are not allowed.

public Position GetPosition ( String ticker );