SETS queue priority is given on the basis of which criteria?

• A. Volume, then price
• B. Price and then time
• C. Time, then price
• D. Alphabetical order

Answer: (B)

The concept being tested is how the SETS order queue is prioritized. In SETS, orders are arranged using price-time priority: the best price takes precedence first, and if several orders offer the same price, the earliest one entered is given priority. This means higher buy prices and lower sell prices are favored, and once prices are equal, the order that arrived first is filled first. Volume does not affect priority, and alphabetical ordering isn’t used. Therefore, priority is determined by price and then by time. That’s why the correct answer is “Price and then time.”