In MMB continuous trading, what is the price outcome for Market vs Market trades?

• A. RP
• B. Limit
• C. Arithmetic mean
• D. Delay

Answer: (A)

In continuous trading, when two market orders meet, there’s no limit price on either side to anchor the trade. The system uses a Reference Price as the execution price. The Reference Price serves as a fair, pre-defined anchor for trades without a stated price, typically tied to the most recently observed price or another established value from the trading session. Executing at this RP avoids unpredictable price jumps and provides a stable, objective outcome for Market vs Market trades.

So the price outcome is the Reference Price. The other possibilities aren’t used here: a limit price would require a resting limit order to provide a price constraint, an arithmetic mean isn’t how these trades are priced, and a delay concerns timing, not the price level.