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.