Electronic Trading: SuperDOT
  1. Electronic Trading: Introduction
  2. Electronic Trading: The Nasdaq Vs. The NYSE
  3. Electronic Trading: The Role of a Specialist
  4. Electronic Trading: The Role of a Market Maker
  5. Electronic Trading: SuperDOT
  6. Electronic Trading: Electronic Communications Networks (ECNs)
  7. Electronic Trading: Small Order Execution System (SOES)
  8. Electronic Trading: Level I, II and III Access
  9. Electronic Trading: Conclusion

Electronic Trading: SuperDOT


Initially introduced as DOT, the SuperDOT system (Super Designated Order Turnaround System) is an electronic system used to place orders for stocks that are listed, which usually refers to those trading on the New York Stock Exchange (NYSE). Keep in mind that SuperDOT is not to be confused with an electronic communication network (ECN), which we will discuss next.

The SuperDOT order-routing system facilitates the transmission of both market and limit orders directly to the trading post (and specialist) where the particular security is traded. This allows for a more efficient transaction because the order can be delivered directly to the specialist rather than phoned down to a floor trader and done manually. SuperDOT can be used for trades under 100,000 shares with priority given to orders of 2,100 shares or less. More than three-quarters of the orders executed through the NYSE are done through the assistance of the SuperDOT system.

After the order has been executed, the report of the transaction is sent back to the broker through the SuperDOT system. This means faster execution of the order and faster reporting of the trade. While most individual investors cannot have access to SuperDOT directly, there are complimentary systems offered by many brokers that replicate similar order executions provided by SuperDOT.

Originally, the SuperDOT system was designed for small order entry, but increasingly, SuperDOT has played a big role in portfolio or basket trading.

Electronic Trading: Electronic Communications Networks (ECNs)

  1. Electronic Trading: Introduction
  2. Electronic Trading: The Nasdaq Vs. The NYSE
  3. Electronic Trading: The Role of a Specialist
  4. Electronic Trading: The Role of a Market Maker
  5. Electronic Trading: SuperDOT
  6. Electronic Trading: Electronic Communications Networks (ECNs)
  7. Electronic Trading: Small Order Execution System (SOES)
  8. Electronic Trading: Level I, II and III Access
  9. Electronic Trading: Conclusion
RELATED TERMS
  1. Designated Order Turnaround - DOT (SuperDOT)

    An electronic system that increases order efficiency by routing ...
  2. Alternative Trading System - ATS

    A trading system that is not regulated as an exchange, but is ...
  3. Electronic Communication Network (ECN)

    An electronic system that attempts to eliminate the role of a ...
  4. Execution

    The completion of a buy or sell order for a security. The execution ...
  5. Intermarket Trading System - ITS

    An electronic computer system that joins the trading floors of ...
  6. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
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