Definition
The term designated order turnaround system refers to a computerized network that routes instructions to exchange specialists, thereby bypassing brokers. The designated order turnaround system quickly executes orders to both buy and sell relatively large baskets of stock.
Explanation
Also known as SuperDOT, the designated order turnaround (DOT) system is a computer program that automatically routes large baskets of orders to exchange specialists in addition to odd-lot transactions. Automated trading systems like SuperDOT have the capacity to execute orders with both speed and accuracy. By removing human intervention in this phase of the order-handling process, these systems can lower the number of errors too. Finally, they're also able to provide another layer of security against fraud, thereby helping to control risk.
While individual investors will rarely have direct access to SuperDOT, their broker's online services place their orders into this system. Through this mechanism, a trader receives a confirmation of their transaction in real time. SuperDot was used by the New York Stock Exchange and was an upgrade from DOT. SuperDOT was replaced by the NYSE Super Display Book system (SDBK) in 2009.
Related Terms
The term high-frequency trading refers to computerized platforms with the capacity to execute a large number of transactions in a relatively short timeframe. High-frequency trading is limited to those institutions with direct feed lines to an exchange.
Moneyzine EditorJanuary 19th, 2024- The term super display book refers to a computerized system used by the NYSE to display, record, and execute orders for securities. The super display book routes orders directly to the correct specialist for immediate execution.Moneyzine EditorSeptember 21st, 2023
- The term quote stuffing refers to the practice of placing and canceling a relatively high number of orders for a security in an attempt to manipulate the market. High-frequency trading programs, and direct links to the exchange, make this tactic possible.Moneyzine EditorSeptember 21st, 2023
The term mixed lot refers to an order that contains a combination of both round and odd lot orders. A mixed lot for stock is any order that is greater than 100 shares, but not a multiple of 100 shares.Moneyzine EditorFebruary 8th, 2024
The term automated order system refers to a computerized network that transmits instructions to the designated order turnaround system or to floor brokers working on the exchange. The automated order system routes the trader's instructions so they can be quickly executed.Moneyzine EditorSeptember 18th, 2023
