How does allocation take place in continuous trading when several matching orders are executable in a money market futures contract with different contract quantities?

In continuous trading within the context of money market futures contracts, allocation follows a mechanism known as price/time priority. This principle ensures that orders are executed in a way that prioritizes the best price first, while also considering the order in which they were received.

When multiple orders at the same price level are available, the system will allocate trades based on the time they were entered into the order book. This means that the first order to be placed at a particular price will be executed before any subsequent orders at that same price. This method is designed to maintain a fair and orderly market where participants know their orders will be processed efficiently according to both price and the order of entry.

The other allocation methods, such as volume/time priority, pro-rata, and time/pro-rata, do not apply in this scenario. Volume/time priority would focus on the size of the orders rather than strictly adhering to price and time. Pro-rata distribution allocates orders based on their volume at the same price, which can complicate the process when order sizes differ. Time/pro-rata would introduce a mixing of both time and volume aspects that doesn't align with the standard execution logic of price/time priority in general continuous trading settings.