Intermarket Trading System - ITS


DEFINITION of 'Intermarket Trading System - ITS'

An electronic computer system that joins the trading floors of all the major equity American exchanges. This system essentially allows all eligible member market-makers and brokers the ability to execute buy and/or sell orders at different exchanges whenever they see that a better price quote available.

The system has connections with large national exchanges, such as the NYSE, as well as smaller regional exchanges, such as the Boston stock exchange.

BREAKING DOWN 'Intermarket Trading System - ITS'

Since the ITS was first initiated during 1978, some parties, such as the Nasdaq, believe the technology used in the ITS is now outdated. Moreover, the current trend for exchanges is moving away the trading floors that the ITS is based on and toward automated trading systems.

  1. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  2. Cincinnati Stock Exchange - CSE

    A securities exchange formed in 1885 by a group of Cincinnati ...
  3. Trading Floor

    The floor where trading activities are conducted. Trading floors ...
  4. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  5. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
  6. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
Related Articles
  1. Active Trading

    Intermarket Analysis: Pinpointing Reversals And Confirming Trends

    Learn how to confirm your analysis based on intermarket trends by watching global markets and particular stocks to pinpoint reversals.
  2. Trading Systems & Software

    The Global Electronic Stock Market

    The way trading is conducted is changing rapidly as exchanges turn toward automation.
  3. Retirement

    Electronic Trading Tutorial

    Learn about the systems that run the market. Topics include market makers, specialists, SuperDOT, ECNs, SOES, Level I, II, and III Access, and more.
  4. Investing Basics

    3 Key Signs Of A Market Top

    When stocks rise or fall, the financial fate of investors change, as well. There are certain signs that can reveal a stock’s course, and investors don’t need to be experts to spot them.
  5. Investing

    Asset Manager Ethics: Rules Governing Capital Markets

    The integrity of the capital markets needs to be kept at utmost importance for all investors. This article shows how to maintain the integrity while investing.
  6. Investing News

    Understand the SEC Rules on Equity Crowdfunding

    The SEC's adoption of equity crowdfunding rules, initiated under the JOBS Act, enables small investors to invest in companies that show early potential.
  7. Technical Indicators

    How To Set Fibonacci Retracement Levels

    Build Fibonacci retracement and extension grids to identify hidden support and resistance levels that may come into play during the life of a position.
  8. Investing Basics

    The World Of High Frequency Algorithmic Trading

    What’s behind the scenes of HFT? Here's a detailed look at the breakneck world of algorithmic and high-frequency trading
  9. Investing Basics

    Tax-Efficient Strategies For International Clients

    In a globalized world, international clients seek to diversify holdings by accessing U.S. markets. Creative strategies will help optimize tax positioning.
  10. Investing Basics

    Why Did Berkshire Go For eVolution Networks?

    Warren Buffett makes an unusual but possibly lucrative addition to the Berkshire Hathaway portfolio
  1. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  2. What is the difference between the equity market and the stock market?

    The terms "equity market" and "stock market" are synonymous, both referring to the equity interests in publicly held companies, ... Read Full Answer >>
  3. What is the difference between shares outstanding and floating stock?

    Shares outstanding and floating stock are different measures of the shares of a particular stock. Shares outstanding is the ... Read Full Answer >>
  4. What are the advantages and disadvantages of listing on the Nasdaq versus other stock ...

    The primary advantages for a company of listing on the Nasdaq exchange are lower listing fees and lower minimum requirements ... Read Full Answer >>
  5. What is the difference between market risk premium and equity risk premium?

    The only meaningful difference between market-risk premium and equity-risk premium is scope. Both terms refer to the same ... Read Full Answer >>
  6. What is the difference between the QQQ ETF and other indexes?

    QQQ, previously QQQQ, is unlike indexes because it is an exchange-traded fund (ETF) that tracks the Nasdaq 100 Index. The ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Term Deposit

    A deposit held at a financial institution that has a fixed term, and guarantees return of principal.
  2. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  3. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  4. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  5. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  6. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!