Crossing Network
Market Microstructure glossary · Market Microstructure Fundamentals
Definition
A trading venue that matches buy and sell orders at prices derived from another market (e.g., the NBBO midpoint), without pre-trade transparency.
Crossing Network in plain English
A crossing network is a quiet matchmaking service for traders: instead of shouting out prices of its own, it just waits for a buyer and a seller who want opposite sides of the same stock and pairs them up. The price it uses is borrowed from the main public market — usually the exact middle between the best public buy price and best public sell price (the 'midpoint'), which tends to be a fair deal for both. The key feature is secrecy: nobody sees these orders sitting there beforehand, so a big trader can move a large amount without tipping off the whole market and scaring the price away.
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