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.
Investopedia explains '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ITS was first initiated during 1978, some parties, such as the Nasdaq, believe the technology used in the ITS is now outdated.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.