b和c选项不懂 谢谢老师

问题如下：

Bloomfield tells Riley that he noticed trades of 500 shares of BYYP stock were executed every 20 minutes for an hour. Bloomfield saw the same pattern of trading in the stock during the previous trading day. He instructs Riley to submit an order to purchase BYYP shares on the assumption that a trader seeks liquidity and is executing a large buy order by breaking it into pieces.

Bloomfield’s strategy to purchase BYYP shares is best classified as electronic:

选项：

A.

arbitrage.

B.

front running.

C.

quote matching.

解释：

B is correct. Bloomfield noticed a pattern of trading in BYYP and decided to front run shares on the assumption that a trader is in the market filling a large buy order by breaking it into pieces. Electronic front runners trade in front of traders who demand liquidity. They identify when large traders or many small traders are trying to fill orders on the same side of the market. The order anticipation strategies of electronic front runners try to identify predictable patterns in order submission. They may search for patterns in order submissions, trades, or the relations between trades and other events.

A is incorrect because electronic arbitrageurs look across markets for arbitrage opportunities in which they can buy an undervalued instrument and sell a similar overvalued one. His decision to purchase BYYP shares is based on the pattern of trading that Bloomfield observed.

C is incorrect because quote matchers trade in front of traders who supply (not demand) liquidity. Bloomfield decides to purchase BYYP shares on the assumption that a trader is in the market seeking (not supplying) liquidity, which is consistent with front running (not quote matching). Quote matchers trade in front of traders who supply liquidity and try to exploit the option values of standing orders. Quote matchers buy when they believe they can rely on standing buy orders to get out of their positions, and they sell when they can do the same with standing sell orders.