SelectNet

AAA

DEFINITION of 'SelectNet'

An automated trading system that facilitates electronic trading between brokers/dealers who are participants of the system by allowing market makers to send orders directly back and forth to one another. It operates with the exchange logic that when a member receives an order offer, the member can either accept, reject or counteroffer the original offer.

INVESTOPEDIA EXPLAINS 'SelectNet'

The SelectNet system helps keep the financial markets running as efficiently and quickly as possible, improving the liquidity of the overall system and keeping transaction costs at a minimum.

Most of the time, individual investors will not hear about SelectNet in the financial news, as it is typically not relevant to the small and limited number of trades that individual investors make.

RELATED TERMS
  1. Electronic Communication Network ...

    An electronic system that attempts to eliminate the role of a ...
  2. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The ...
  3. SuperMontage

    A fully integrated order display and execution system for the ...
  4. Designated Order Turnaround - DOT ...

    An electronic system that increases order efficiency by routing ...
  5. Small Order Execution System - ...

    A computer network that automatically executed trades in Nasdaq ...
  6. Direct-Access Broker

    A stockbroker that concentrates on speed and order execution ...
Related Articles
  1. Getting To Know The Stock Exchanges
    Options & Futures

    Getting To Know The Stock Exchanges

  2. Understanding Order Execution
    Investing Basics

    Understanding Order Execution

  3. Market Makers Vs. Electronic Communications ...
    Forex Education

    Market Makers Vs. Electronic Communications ...

  4. The Global Electronic Stock Market
    Trading Systems & Software

    The Global Electronic Stock Market

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center