Which category includes on-exchange off order book trades where both parties are participants?

Which category includes on-exchange off order book trades where both parties are participants?

• A. On exchange on order book
• B. On exchange off order book
• C. Off-exchange
• D. Off order book

Answer: (B)

On-exchange off order book trades are executions that happen using the exchange’s platform but do not appear in the public order book. Two participants agree privately and the trade is matched and cleared through the exchange, so both sides are active participants within the same venue. The price and size stay off the visible book, which helps prevent signaling large intentions to the market while still benefiting from the exchange’s clearing and settlement services. This fits the scenario best because it combines execution on the exchange with completion off the public order book, unlike on-exchange on order book (visible in the book), off-exchange ( negotiations outside the exchange), or off order book (not on the exchange at all).

On-exchange off order book trades are executions that happen using the exchange’s platform but do not appear in the public order book. Two participants agree privately and the trade is matched and cleared through the exchange, so both sides are active participants within the same venue. The price and size stay off the visible book, which helps prevent signaling large intentions to the market while still benefiting from the exchange’s clearing and settlement services.

This fits the scenario best because it combines execution on the exchange with completion off the public order book, unlike on-exchange on order book (visible in the book), off-exchange ( negotiations outside the exchange), or off order book (not on the exchange at all).