What is Central Limit Order Book (CLOB)?

A central limit order book (CLOB) is a trading model used by asset trading exchanges. Central limit order books work by matching customer orders (bids) and make use of a 'price time priority' mechanism to ensure that orders with the highest bid are executed quickly. CLOBs are generally considered highly transparent, real-time anonymous (allowing customers to trade with each other anonymously), extremely fast, and cheaper to use than other alternatives.