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What is the difference between auction markets and dealer markets, and what is CUB?

What is the difference between auction markets and dealer markets, and what is CUB?

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Asked by Frey, Last updated: Nov 30, 2021

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3 Answers

J. Emmerich

J. Emmerich

J. Emmerich
J. Emmerich, Web Content Writer, New York City

Answered Oct 24, 2018

There are a lot of people who become confused with the differences between the dealer market and auction market. An auction market is a place wherein there are different bidders who are trying to outdo each other in one central market. There are different people who can enter and bid for the same things. The best bidder will win. The dealer market does not necessarily have a market wherein people can go and visit.

Rather, those who are selling will just post their prices and it will be up to the people if they would push through with it or not. CUB is different from these two. This stands for Canadian Unlisted Board. This is what dealers use whenever they have to report some trades that are currently unlisted.

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M. Krasinski

M. Krasinski

M. Krasinski
M. Krasinski, Content Writer, Columbus

Answered Oct 23, 2018

Auction market refers to a market where by buyers point out the highest price they are willing to pay for a product or service and sellers determine the lowest price they are willing to sell their goods and services.

A dealer market is a financial market whereby many dealers post prices at which they are willing to buy or sell a specific security of instrument.

Canadian Unlisted Board (CUB) is an Internet-based post-trade reporting system used by dealers to report completed trades in unlisted and unquoted securities.

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John Smith

John Smith

John Smith
John Smith

Answered Sep 08, 2016

Canadas stock exchanges are auction markets. in an auction market, clients bids and offers for a stock are channelled to a single central market and compete against each other. brokerage firms usually act as agents for their clients. the prices of all transactions are publicly visible. dealer markets, also known as over-the-counter (otc) or unlisted markets, do not necessarily have a central trading location or exchange where trades flow. market makers post their bid and ask prices, but the prices at which transactions occur are less publicly visible and may differ from the posted prices. almost all bond trading in canada takes place in dealer markets. cub stands for the canadian unlisted board. it is the internet-based post-trade reporting system used by dealers to report trades in unlisted securities.
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