microstructure

Midpoint Peg

A midpoint peg is a pegged order that references the mid-point of the National Best Bid and Offer (NBBO) and moves with quotes to seek execution near the current mid-point.

Example: A midpoint peg order is placed on a U.S. equity venue; as the NBBO updates, the order’s reference price moves with the mid-point and may trade at that price if a counterparty is available.

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