What describes closed-book markets?

Closed-book markets refer to trading environments where traders do not have real-time access to all quotes for a security. This means that the transparency typically associated with open markets, where all participants can see current bid and ask prices, is limited or restricted. In closed-book markets, information asymmetry exists, often leading to reduced liquidity and potentially increased spreads between buying and selling prices since traders cannot easily gauge the supply and demand for a security.

Access to comprehensive and timely market information is crucial for efficient pricing and decision-making in trading. In contrast, the other choices present scenarios that do not accurately characterize closed-book markets. For instance, in a closed-book market, not all traders—especially retail traders—can see all the relevant quotes, which directly underlines the nature of these markets.