Dynamic market models in securities trading

A market model defines the rules of trading on capital markets. Market part icipants prefer a wide variety of market models because of their heterogene ous requirements. Today, a large amount of exchanges with different market models can be observed. However, the present tendency of cooperation amongs t exchanges and the diminishing influence of traditional floor trading lead s to a reduction in the number of market models. This reduces the market pa rticipant's choices and leads to a loss of quality for them. The paper intr oduces and presents the concept of dynamic market models that accomplish th e trader's requirements, because they enable traders to individually specif y the desired market model for each particular trade. For this purpose, sof tware agent technology was applied to realize a dynamic market model within a prototype approach. This protoype for bond trading, AMTRAS, is presented .