Definition
The term Advanced Computerized Execution System refers to the technology used by the NASDAQ to automate trades and order entry between firms and market makers that have an established working relationship.
Explanation
The Advanced Computerized Execution System, or ACES, is a subscription service offered by the National Association of Dealers Automated Quotations (NASDAQ). Following the October 1987 stock market crash, NASDAQ instituted a number of changes, including the automation of order routing through ACES in 1988.
The NASDAQ exchange is a continuous auction market in which market makers quote bid and ask prices for standard order sizes. Trading typically takes place through the Small Order Execution System (SOES) or the Advanced Computerized Execution System (ACES). Firms trading in the NASDAQ market have access into a market maker's trading system through ACES, which acts as a pass through system to confirm order entry and execution.
Related Terms
The investing term floor broker refers to an independent member of an exchange that helps execute client orders. Floor brokers buy and sell securities from a specialist; attempting to get the best possible price for their clients.
Moneyzine EditorJanuary 18th, 2024- The investing term stock exchange specialist refers to a member of a stock exchange that assists in the trading of certain stocks. The principal duty of a specialist is to match buyers of stocks with sellers, thereby ensuring liquidity in the stocks they trade.Moneyzine EditorSeptember 21st, 2023
The investing term day trading refers to individuals that buy and sell securities throughout the day, closing out their positions before the markets close. Trades include several standard securities, including stocks, options, and futures (currencies, commodities, interest rates).
Hristina NikolovskaJanuary 15th, 2024- The investing term swing trading refers to individuals who buy securities intending to capture gains in a matter of days or weeks. A swing trader looks to profit from stocks, options, and futures contracts exhibiting short-term price momentum.Hristina NikolovskaSeptember 21st, 2023
- The investing term over-the-counter market refers to decentralized securities exchanges where dealers act as market makers and trades occur between investors. Bonds, stocks, as well as non-standard derivatives can be traded by investors on the over-the-counter (OTC) market.Moneyzine EditorSeptember 20th, 2023
- The investing term program trading refers to the use of computer and network infrastructures, along with buy and sell logic, to identify and automate orders. Program trading allows investors to immediately respond to market conditions, thereby maximizing the potential for profits.Moneyzine EditorSeptember 21st, 2023
