Fourth market

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Fourth market trading is direct institution-to-institution trading without using the service of broker-dealers, thus avoiding both commissions,[1] and the bid–ask spread.[2] Trades are usually done in blocks. It is impossible to estimate the volume of fourth market activity because trades are not subject to reporting requirements.[citation needed] Studies have suggested that several million shares are traded per day.[citation needed]

See also[edit]


  1. ^ "Fourth market". NASDAQ. Retrieved 26 March 2018.
  2. ^ "How Securities are Traded". Gulf Base. Retrieved 26 March 2018.