Are separate order books maintained for complex instruments?

Separate order books are indeed maintained for complex instruments. This system allows for better management and tracking of the various types of orders related to complex products, which may include options strategies, spreads, and other derivative instruments that combine multiple legs or components. By organizing these trades in distinct order books, the exchange can streamline execution, enhance transparency, and mitigate confusion that might arise from the diverse nature of complex products.

This segregation is essential because complex instruments can behave differently than standard single-instrument trades. Therefore, a dedicated order book helps market participants see the depth of the market for these instruments, reassures them of the availability of counterparties, and facilitates more effective trading strategies.

Other options regarding the maintenance of order books are misleading or simplistic. The notion that order books are not separated could lead to inefficiencies in trading complex instruments, while the ideas of only standard instruments or specific trading volumes don’t accurately reflect how exchanges handle the complexity inherent in certain financial products.