Skip to main content

Institutional Market Structure

Definition

Institutional market structure refers to the framework and operational mechanisms through which large organizations, such as banks, hedge funds, and asset managers, participate in financial markets. This structure typically involves specialized trading platforms, custody solutions, regulatory compliance protocols, and bespoke services tailored to the high volume and stringent requirements of institutional investors. It contrasts with retail market structures, which cater to individual participants with different needs and capacities. The institutional market often dictates significant capital flows and market liquidity.