Investment - Market Structure - Quote-Driven Markets

Investors trade with dealers in quote-driven marketplaces, also known as dealer markets or price-driven markets. The fact that investors transact with dealers at the prices such dealers quote gives these markets their name. The majority of spot commodities—commodities whose trades provide for instant delivery—as well as almost all bonds and currencies trade in quote-driven marketplaces.  

Because securities were once physically exchanged over a counter in the dealer's office, quote-driven markets are also referred to as over-the-counter (OTC) markets. In today's OTC markets, the majority of deals are made over the phone, online, or through instant messaging apps.