An overview of Alternative Trading Systems (ATS), platforms that allow trading securities outside of traditional exchanges, under regulatory oversight.
An Alternative Trading System (ATS) is a non-exchange trading venue that matches buyers and sellers to trade securities, usually through electronic means. It operates independently of the traditional stock exchanges and is often used to facilitate large block trades with minimally impacting the market.
The American Stock Exchange (AMEX) is the third-largest options exchange in the United States, known for pioneering index options on broad-based and sector indices. Acquired by NYSE Euronext in 2008, AMEX combines electronic trading with a human-based open outcry system.
Book-entry securities are securities that exist only as electronic records and do not have a physical certificate, facilitating efficient trading and ownership transfer.
Dark pools are specialized financial trading platforms that enable the buying and selling of large quantities of securities, often anonymously, without immediate public disclosure of the trade prices. These platforms offer benefits like improved trading prices for investors but also pose risks such as increased market volatility and reduced market transparency.
A computerized securities marketplace where transactions are facilitated by market makers and brokers using distributed processing, replacing the earlier centralized auction markets.
Electronic trading refers to the process of buying and selling financial instruments, such as stocks and options, through electronic platforms via the Internet. This modern method of trading allows customers to place orders online through brokers, often at lower commission rates compared to traditional or discount brokers.
A matched bargain is a type of stock transaction in which a sale of a specific quantity of stock is matched with a purchase of the same quantity of the same stock, often conducted electronically on exchanges.
In the European Union, a Multilateral Trading Facility (MTF) is a financial trading platform that operates as an alternative to regulated exchanges. It allows for electronic trading and often matches buyers and sellers anonymously, akin to the U.S. Alternative Trading System (ATS).
An advanced electronic order book trading system utilized by the London Stock Exchange (LSE) to facilitate the matching and execution of orders for securities.
The London Stock Exchange's order-driven electronic trading system that came into operation in 1997, replacing the previous quote-driven system. It facilitates automatic matching of buyers' and sellers' orders, price recording, and seamless transaction settlement.
The primary stock exchange in Canada, facilitating the trading of Canadian shares. Transitioned to fully electronic trading in April 1997.
