At present, there are two kinds of securities trading mechanisms in the world: instruction-driven system and quotation-driven system.

The complete market maker system is a kind of securities and futures trading system different from bidding trading. A complete market maker system has two important characteristics:

First, all customer orders must be bought and sold by market makers with their own accounts, and there is no direct transaction between customers and customer orders.

Second, market makers must quote the buying and selling price in advance, and investors can only place orders after seeing the quotation.

Therefore, in financial theory, the market mechanism that implements the market maker system is called quotation-driven mechanism. Corresponding to this is the order-driven system, also known as the bidding trading system and the entrustment-driven system. It means that buyers and sellers send orders to their respective brokers (members of the exchange), and then the brokers send the orders to the exchange. On the basis of summarizing all the trading orders, the trading system of the exchange implements the matching transaction and completes the transaction according to the principle of price priority and time priority. Under the order-driven system, the market price is driven by the buying and selling orders issued by investors and generated through bidding. The bidding matching method can be either the traditional public bidding method or the computer automatic matching method. The basic feature of the auction market is that the formation of securities trading prices is directly determined by buyers and sellers, and investors trade with other uncertain investors, not market makers. The flow of buying and selling orders is the fundamental driving force to promote market operation and price formation. At present, this trading system is adopted by two major domestic stock exchanges and three major futures exchanges.

Comparison of two trading mechanisms (1) Difference in price formation. The opening price and subsequent transaction price in the order-driven mechanism are all formed through bidding. Take China's futures market as an example, all investors' orders are collected in the mainframe of the exchange, and the computer automatically makes orders with the same price clinch a deal. The opening price is the benchmark price at 9: 25, which meets the following three conditions. The first is the largest trading volume, followed by the buying declaration above the benchmark price and the selling declaration below the benchmark price. Third, the buyer or seller with the same benchmark price declares that at least one party has made a deal. The transaction price is generated in the trading system. In the quotation-driven mechanism, the opening price and subsequent transaction price of securities are quoted by market makers, and the transaction price is input from outside the trading system.

(2) Differences in transaction costs. Under different trading mechanisms, investors' transaction costs are different. In the order-driven market, the price of securities is single, and the transaction cost of investors is only the handling fee paid to brokers. In the quotation-driven market, there are two kinds of market quotations at the same time: askprice and bidprice. The difference between them lies in the profit of market makers and the reasonable remuneration of market makers for "instant service". But investors are forced to bear additional transaction costs and price differences.

(3) the ability to handle large orders. Quote-driven system can effectively handle large trading orders. In the order-driven system, it often takes a long time to complete a transaction when a large order has to wait for the order of the counterparty.

Through the above comparison, we can find that the two mechanisms have their own advantages and disadvantages. From the historical origin, the complete market maker system is closely related to the quotation-driven mechanism, which has advantages in real-time trading, block trading ability and price stability, but it is not as good as the instruction-driven system in terms of operating cost and transparency. It is worth noting that these two mechanisms are not antagonistic and incompatible. In their respective progress, they constantly absorb each other's advantages and gradually merge. For example, new york Stock Exchange (NYSE) introduced the expert broker system as the bidding market, while Nasdaq introduced the electronic trading system at 1997, and the price decision has been driven from simple quotation to mixed quotation and instruction.