Automated Confirmation Transaction Service - ACT

AAA

DEFINITION of 'Automated Confirmation Transaction Service - ACT'

An automated system designed to document and report the clearing of trades in the Nasdaq market. Designed to increase transparency, the Automated Confirmation Transaction Service (ACT) is a technology platform that provides faster access to trade information, increase the efficiency of trade reconciliation and back-office transactions and provides online access to the status of all trade entries.

Also called ACT Service.

INVESTOPEDIA EXPLAINS 'Automated Confirmation Transaction Service - ACT'

Prior to using the ACT, the Nasdaq utilized the Trade Acceptance and Reconciliation Service, or TARS. ACT replaced TARS and assumed its functionality in the third quarter of 1998.

RELATED TERMS
  1. Reconciliation

    An accounting process used to compare two sets of records to ...
  2. Depository Trust Company - DTC

    One of the world's largest securities depositories, it holds ...
  3. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  4. Chill

    Special restrictions that can be placed on a given security by ...
  5. Qualified Special Representative ...

    An agreement between broker-dealers to clear trades without the ...
  6. National Association Of Securities ...

    The NASD was a self-regulatory organization of the securities ...
RELATED FAQS
  1. What kinds of derivatives are traded on an exchange?

    There are many different types of derivatives traded on exchanges including options, futures, swaps and forward contracts. ... Read Full Answer >>
  2. What is the definition of "Financial Instruments Business" under the FIEA?

    The Financial Instruments and Exchange Act (FIEA) defines a financial instruments business as any firm with the primary business ... Read Full Answer >>
Related Articles
  1. Investing Basics

    Principal Trading and Agency Trading

    Ever wonder what happens behind the scenes when you buy or sell a stock? Read on and find out!
  2. Options & Futures

    The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.
  3. Investing

    How Nasdaq Makes Money

    NASDAQ provides a marketplace which offers money-making opportunities to investors. Investopedia explains how NASDAQ makes money.
  4. Trading Strategies

    Is Liquidity Improved By High Frequency Trading (HFT)?

    Is the market liquidity provided by high frequency trading a reality or an illusion?
  5. Investing

    How The NYSE Makes Money

    We examine how the New York Stock Exchange, the leading US stock exchange, makes money.
  6. Trading Strategies

    High-Frequency Trading Regulations

    Current regulations on high-frequency trading, and possible future ones. How some people think high-frequency trading should be regulated or illegal.
  7. Trading Strategies

    The World's 10 Most Famous Traders Of All Time

    A review of the most famous and infamous traders in history.
  8. Mutual Funds & ETFs

    ETF Bubble Or No Bubble?

    ETFs might be the recommendation of choice for the unimaginative financial advisor, but that doesn’t mean that the industry is in a bubble.
  9. Trading Strategies

    The 10 Worst Mistakes Beginner Traders Make

    Traders generally buy and sell securities more frequently and hold positions for much shorter periods than investors, which can result in costly mistakes.
  10. Options & Futures

    A Detailed Look Into China's Options Market

    As the Chinese options market gradually takes shape, we provide an overview, including details of the initial phase and building blocks, primary beneficiaries, the impact on the overall financial ...

You May Also Like

Hot Definitions
  1. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  2. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  3. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  4. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  5. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  6. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
Trading Center