A display book is a tool used in trading markets to record data related to the execution of orders. The NYSE Display Book is a well-known example used to track pending orders and manage the flow of orders through the exchange. Other exchanges also use display books as logging and monitoring tools. Before computer technology, display books were maintained manually, but now electronic books are the norm. Software packages allow specialists to enter entries from one screen and generate charts and graphs to capture data about trading activity.
A display book is a tool used in many different trading markets. The main functions of the book have to do with the timely recording of data relating to the execution of orders. Data of this type is typically organized using several criteria, including the type of order placed, the price associated with the order, the quantity of units involved, and the time the order was placed. Specialists who make use of a display book approach will often hold books on every stock they trade.
One of the best-known examples of display books is used on the New York Stock Exchange. Usually referred to as the NYSE Display Book, entries made in the register make it much easier to track the current status of pending orders, as well as identify when those orders have been completed. This approach allows you to more efficiently manage the flow of orders through the exchange. Entry into the book occurs in conjunction with the data feed via the consolidated tape which provides real-time information on market happenings.
Other exchanges around the world also make use of the watch book as a logging and monitoring tool for exchange activity. In past years, there was more variance in how the data was organized within the books. As new methods of keeping records emerge, the need to standardize the arrangement of data becomes apparent. While there are still some differences in how information is recorded in the books associated with a given exchange, the formats are generally similar enough for interested parties to quickly locate the information they need.
Before the advent of computer technology, the process for maintaining a display book was a completely manual process. Every specialist associated with the business of trading used a simple notebook filled with pages arranged in columns. Order entries including date and time, type and quantity were written to the columns as quickly as possible. This created a situation where a number of scribes or assistants were required to keep up with the constant influx of orders and ensure they were carried out in a timely manner.
Today, electronic books are the norm, allowing specialists to quickly switch from one viewing book page to another. There are software packages that can allow a specialist to enter entries from one screen rather than going to different screens to enter different transactions. This has made it much easier to keep up with market activity, as well as being able to generate charts and graphs that capture data about trading activity on a stock within a specified time frame.
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