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Crossed market

An abnormal condition where the best bid exceeds the best offer across venues, producing a negative spread that signals stale data or a venue problem.

A cross should be impossible in a healthy market — it implies someone is willing to pay more than someone else is willing to accept, with nobody matching them. In practice it means a feed is lagging, a venue is not responding, or a quote is stuck.

Systems react defensively: many algorithms pause routing during crosses, and venues may invoke self-help to ignore an unresponsive market rather than keep routing into a black hole.

Example: the tape shows 42.10 bid and 42.05 offered, a negative 5-cent spread. In reality one venue's securities-information-processor update is 900 milliseconds stale; firms on a direct-feed see 42.04 / 42.05 and trade normally while consolidated-feed users sit out.

Related: locked-market, securities-information-processor, direct-feed, latency

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