Chapter 04 · Section 4.1
Public Orders
In some exchanges' regulations the term "public orders" is used. Before we continue with the specialist and the Competing Market Maker System, let us review what public orders are:
a) Orders that may be executed publicly (as opposed to orders whose execution must not be known publicly).
b) Orders coming from the public, i.e. non-exchange members (customers).
c) Orders for which a non-exchange member (i.e. the public) may be the counterpart for execution.
d) None of the above.
The CBOE, for instance, has the Public Order Book. These orders have priority over market maker quotes if the price is the same.