SHOP

SEC requirement that brokers show investors the best bid and offer price for a stock at any given time.

Automated Trading or AT is part of the electronic trading universe. Automated Trading refers to executing trades based on algorithms, or ALGOS, which are based on a set of pre-defined rules e.g., price, time, and volume among others. Market making and High Frequency Trading (HFT) may also be considered automated…

Pre-approved group of institutional firms who enter into an agreement with the ETF sponsor such as Blackrock/iShares. APs offer a basket of securities (or receive a basket of securities) from the ETF sponsor in exchange for ETF shares. APs may create or redeem (buy or sell) ETFs on behalf of…

See Alternative Trading System.

See Automated Trading.

A branch of computer science that is concerned with the automation of intelligent behavior. To be considered “intelligent”, should respond to situations flexibly, make sense of ambiguous or contradictory messages, recognize the different elements of a situation, find similarities between situations despite differences which may separate them and draw distinctions…

See Authorized Participant.

Electronic trading system that is an alternative to an organized exchange which matches orders for buyers and sellers of securities.

Multiple parties on the same platform can trade with each other. So, dealer to dealer, dealer to investor and investor to investor can all trade directly with each other. This is in contrast to the traditional model where a dealer supplies the price.

Automated trading whereby trades are executed using a set of pre-defined instructions or rules via computer programs. Trading is automated through one or more stages of the trading process – pre-trade or data analysis, trading signal generation or what to trade, and trade execution, i.e., when and how to trade.

See Sterling Overnight Index Average.

A transaction-based overnight interest rate that is unsecured. The rate will serve as the risk-free reference rate in Japan. TONAR is used in the overnight index swap (OIS) market as a reference rate.