ACT (NASDAQ)
Encyclopedia
ACT, or Automated Confirmation of Transactions, is system for reporting and clearing trades in the over-the-counter
(OTC) and NASDAQ
securities markets. In contrast to Qualified Special Representative (QSR) clearing via National Securities Clearing Corporation (NSCC), which requires multiple relationships between brokers, dealers, clearing firms, ACT facilitates the simplifies the process of clearing by providing a single counterparty
to interact with.
ACT offers a risk management
system that allows clearing firms to monitor the activity of their clients. This tool is unique within the clearing business.
The Financial Industry Regulatory Authority
(FINRA) also refers to ACT as the Trade Reporting Facility (TRF).
Over-the-counter (finance)
Within the derivatives markets, many products are traded through exchanges. An exchange has the benefit of facilitating liquidity and also mitigates all credit risk concerning the default of a member of the exchange. Products traded on the exchange must be well standardised to transparent trading....
(OTC) and NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
securities markets. In contrast to Qualified Special Representative (QSR) clearing via National Securities Clearing Corporation (NSCC), which requires multiple relationships between brokers, dealers, clearing firms, ACT facilitates the simplifies the process of clearing by providing a single counterparty
Counterparty
A counterparty is a legal and financial term. It means a party to a contract. A counterparty is usually the entity with whom one negotiates on a given agreement, and the term can refer to either party or both, depending on context....
to interact with.
ACT offers a risk management
Risk management
Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities...
system that allows clearing firms to monitor the activity of their clients. This tool is unique within the clearing business.
The Financial Industry Regulatory Authority
Financial Industry Regulatory Authority
In the United States, the Financial Industry Regulatory Authority, Inc., or FINRA, is a private corporation that acts as a self-regulatory organization . FINRA is the successor to the National Association of Securities Dealers, Inc. ...
(FINRA) also refers to ACT as the Trade Reporting Facility (TRF).