Spot Market Structure

Definition ∞ Spot market structure refers to the organizational framework and operational rules governing the immediate exchange of assets for cash. In digital asset markets, this includes the mechanisms by which cryptocurrencies are bought and sold for immediate delivery, such as order books, automated market makers, and over-the-counter desks. It encompasses the rules regarding price discovery, trade execution, settlement procedures, and the roles of various market participants. The structure directly influences liquidity, pricing efficiency, and overall market fairness.
Context ∞ The evolution of spot market structure in the digital asset space is a significant topic in regulatory discussions and market development, aiming to establish robust and transparent trading environments. News often compares the advantages and disadvantages of centralized exchange order books versus decentralized AMM models. A critical future development involves the convergence of best practices from traditional finance with the unique properties of blockchain technology to create more resilient and globally accessible spot markets.