How To Make Operatıon In Nasdaq Tradıng System
NASDAQ Stock Market is the largest stock market with more than 5,000 well-known companies.
Every year, this market sells and purchases more than a billion shares, which bring their owners profit or loss. In work, investors are helped by modern telecommunication and computer technologies, thanks to which each trader has the opportunity to monitor the dynamics of the market, to receive reports on trade in real time, and to make operational decisions.
Service and Maintenance The NASDAQ Stock Market provides traders with everything they need to complete transactions, as well as receiving information from other financial markets. This is very important, because all financial markets are interrelated, and therefore changes in one market affect another market.
The main device for access of traders to the market is NASDAQ Workstation II (NWII), which consists of two main elements:
Software that allows you to make transactions and negotiate between market participants.
Trading network NASDAQ.
Thus each NASDAQ Workstation II communicates with the server and the main computer through the T1 -telecommunication line.
HOW TO ENTER THE MARKET?
For each NWII subscriber, three service levels are available that allow you to:
- See information on internal quotes. At the same time, no orders are issued.
- Ask market makers for quotes and enter orders, watch reports.
- All of the above, as well as the ability to enter quotations for securities.
Also, participants in the trade enter the market through a two-way communication line Computer-to-Computer Interface (CTCI). In this case, transactions from the trader’s computer are transferred to the computer system NASDAQ. The main users of this connection are companies that are contacted on behalf of companies with complex structure with the NASDAQ exchange.
WHAT ARE THE EXECUTION SYSTEMS?
There are several order execution systems on the exchange – ACES, SelectNet, CAES / ITS and SOES, SuperSOES. The ACES system makes the process of entering orders easier and provides routing between market makers and clients of the company. Through this system, orders are sent to market makers for execution directly to the internal system, and back comes confirmation of the market maker’s fulfillment of its task. At the same time, market makers receive not only the order return function, but also its changes, as well as deletions. ACES makes telephone conversations easier and eliminates complex workflow.
All the features of the system are available to users immediately after registration, and participation in it is voluntary. Although the acceptance of orders begins already from 7 am, until 8 o’clock they are not exhibited. Up to 18:30 the system participants can cancel orders, but they do not have the right to change or place new orders. Starting at 18:30, messages are no longer being exchanged, and daily orders are deleted.
The main systems for reconciliation, analysis and trading reports on NASDAQ are OptiMark, Automated Confirmation Transaction Service (ACT), MarketWatch and Primex Auction System.
- OptiMark allows participants to display complex systems in simple graphs, represent their interests in a wide range of lots and prices, and obtain trade profiles. ,
- ACT provides participants with three important functions at the end of the transaction – risk management, transaction notification and the ability to compare transactions.
- MarketWatch carries out round-the-clock monitoring of NASDAQ Stock Market through an automated system for analyzing trading activity for the day, week and month. All observations are made only in real time.
- Primex Auction System is a system for trading stock. Its participants get the opportunity to sell stock quotes, use market orders, and the system guarantees complete anonymity of each participant. Orders are executed at the offered price on an auction basis.