Here are some of the differences between order driven market and quote driven market –
1. An order driven market is one in which all the orders of both buyers and sellers are shown, showing the price at which they are willing to buy or sell a stock and the quantity of the stock that they are willing to buy or sell at that price. While in a quote driven markets only shows the bid and ask offers of designated market makers, dealers or specialists. Hence in this market there will be bid and ask price, suppose the bid price of a stock is $15 and ask price is $16 then it implies that one can sell his or her stock at $15 and buy it at $16.
2. In an order driven market, there is no guarantee of order execution but, in the quote driven market, there is that guarantee of the execution of the order.
3. An order driven market is transparent in the sense that it clearly shows all of the market orders and what price people are willing to buy at or sell for which is not the case with quote driven markets.
4. A quote driven market is more liquid due to presence of market makers which is not case with order driven markets.