Direct Market Access - DMA

DEFINITION of 'Direct Market Access - DMA'

This refers to electronic facilities, often supplied by independent firms, that allow buy side firms to access liquidity for securities they may wish to buy or sell. Buy side firms are customers of sell side firms - brokerages and banks which may act as market makers in a security. Buy side firms will still use the trading infrastructure of sell side firms, but have more control over how the trade is executed.

BREAKING DOWN 'Direct Market Access - DMA'

Direct market access allows buy side firms to often execute trades with lower costs. Since it is all electronic, there is less chance of trading errors. Order execution is extremely fast, so traders are better able to take advantage of very short-lived trading opportunities.

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