DEFINITION of 'Automated Bond System - ABS'
The electronic system on the NYSE that records bids and offers for inactively traded bonds until they are canceled or executed.
BREAKING DOWN 'Automated Bond System - ABS'
Because the bid and ask prices of inactively traded bonds aren't constantly changing due to demand and supply conditions, investors looking for a quote may have difficulties. By having all inactive bonds electronically monitored, the NYSE is able to keep a good inventory of bond prices, just in case an investor is interested in purchasing them.