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An '''order matching system''' or simply '''matching system''' is an electronic system that matches [[order (exchange)|buy and sell orders]] for a [[stock market]], [[commodity market]] or other [[financial exchange]]. The order matching system is the core of all electronic [[Exchange (organized market)|exchanges]] and are used to execute orders from participants in the exchange.
Orders are usually entered by members of an exchange and executed by a central system that belongs to the exchange. The algorithm that is used to match orders varies from system to system and often involves rules around [[best execution]].<ref>{{cite web |url=http://www.cmegroup.com/confluence/display/EPICSANDBOX/Matching+Algorithms |title=Matching Algorithms |publisher=[[CME Group]] |
The order matching system and [[Implied Order System|implied order system]] or Implication engine is often part of a larger [[electronic trading]] system which will usually include a [[settlement system]] and a [[central securities depository]] that are accessed by [[electronic trading platform]]s. These services may or may not be provided by the organisation that provides the order matching system.
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==History==
Electronic order matching was introduced in the early 1980s in the United States to supplement [[open outcry]] trading (for example the then Mid West Stock Exchange (now the [[Chicago Stock Exchange]]) launched the "MAX system, becoming one of the first stock exchanges to provide fully automated order execution" in 1982).<ref>{{cite web |url=http://www.chx.com/chx/history/ |title=History:Chicago Stock Exchange Historical Timeline|
==Algorithms==
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