DEFINITION of 'Automated Bond System - ABS'

The electronic system on the NYSE that records bids and offers for inactively traded bonds until they are canceled or executed.

BREAKING DOWN 'Automated Bond System - ABS'

Because the bid and ask prices of inactively traded bonds aren't constantly changing due to demand and supply conditions, investors looking for a quote may have difficulties. By having all inactive bonds electronically monitored, the NYSE is able to keep a good inventory of bond prices, just in case an investor is interested in purchasing them.

  1. Cabinet Crowd

    Members of the NYSE who typically trade in inactive bonds. The ...
  2. Inactive Bond Crowd

    A group of exchange members who buys and sells bonds, that are ...
  3. Active Bond

    A bond or other fixed-income security that is frequently traded ...
  4. Corporate Bond

    A corporate bond is a debt security issued by a corporation and ...
  5. U.S. Savings Bonds

    A U.S. savings bond is a government bond that offers a fixed ...
  6. Bid Bond

    A bid bond is a debt secured by a bidder for a construction job, ...
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