of Stock Exchanges, www.fibv.com; e-mail: secretariat@fibv.com; Tel: (33 1) 44 01 05 45 Fax (33 1) 47 54 94 22; 22 Blvd de Courcelles Paris 75017.     review two of the biggest non-U.S. stock markets: the London and Tokyo exchanges. Fig- ure 3.5 shows the volume of trading in major world markets.     The London Stock Exchange   The London Stock Exchange is conveniently located between the worlds two largest fi- nancial markets, those of the United States and Japan. The trading day in London overlaps with Tokyo in the morning and with New York in the afternoon. Trading arrangements on the London Stock Exchange resemble those on Nasdaq. Competing dealers who wish to make a market in a stock enter bid and asked prices into the Stock Exchange Automated Quotations (SEAQ) computer system. Market orders can then be matched against those quotes. However, negotiation among institutional traders results in more trades being exe- cuted inside the published quotes than is true of Nasdaq. As in the United States, security firms are allowed to act both as dealers and as brokerage firms, that is, both making a mar- ket in securities and executing trades for their clients. The London Stock Exchange is attractive to some traders because it offers greater anonymity than U.S. markets, primarily because records of trades are not published for a period of time until after they are completed. Therefore, it is harder for market participants to observe or infer a trading program of another investor until after that investor has com- pleted the program. This anonymity can be quite attractive to institutional traders that wish to buy or sell large quantities of stock over a period of time.     The Tokyo Stock Exchange   The Tokyo Stock Exchange (TSE) is the largest stock exchange in Japan, accounting for about 80% of total trading. There is no specialist system on the TSE. Instead, a saitori maintains a public limit-order book, matches market and limit orders, and is obliged to I. Introduction 3. How Securities Are Traded The McGraw−Hill