Also known as: ITS
Written by attorneys · grounded in primary & secondary sources — see below
A communications network that links securities exchanges and permits electronic transfer of orders from one exchange to another when a better price is available elsewhere.
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Iris Energy places a large sell order for listed shares on the NYSE floor. The Intermarket Trading System detects a higher bid on the regional exchange and automatically routes the order there for immediate execution at the improved price.
Interlink Communications seeks to buy shares listed on multiple exchanges. Through the Intermarket Trading System the broker receives an alert of a superior offer on a distant floor and transfers the order to lock in the lower price before the quote changes.
Infinity Bank traders monitor the consolidated tape and notice a price discrepancy between two exchanges. The Intermarket Trading System forwards the order electronically so the bank obtains the more favorable terms without manual intervention.
Ironwood Capital submits a buy order on its primary exchange. The Intermarket Trading System identifies a matching sell order at a better price on another exchange and completes the trade electronically within seconds.
Igor Ito instructs his broker to purchase exchange-listed securities. The Intermarket Trading System scans participating floors, locates a superior quote, and routes the order to that venue for execution at the improved price.
India Inoue's firm maintains positions in stocks traded on several exchanges. When a better bid appears elsewhere the Intermarket Trading System automatically shifts the order to the alternate floor and records the improved fill.
It serves as a communications network that links securities exchanges and allows orders to be routed electronically to another exchange when a better price is displayed there.
Supporting sources
The exchanges introduced the Intermarket Trading System in 1978 as part of the effort to create a national market system under the Securities Acts Amendments of 1975.
Supporting sources
It works together with the consolidated tape by enabling electronic order transfer so that trades in listed securities can occur at the best available price across participating exchanges.
Supporting sources
…has crystallized into rules of evidence consistent with that standard. These rules are historically grounded rights of our system, developed to safeguard men from dubious and unjust convictions, with resulting forfeitures of life, liberty and property." Davis v. United States, supra, at 488, stated that the…