Automated trading system - AbsoluteAstronomy.com

An automated trading system (ATS) is a computer trading program that automatically submits trades to an exchange.

An example of an early ATS is Instinet

Instinet

Instinet is an institutional, agency-only broker. As such, it executes trades for roughly 1,500 “buyside” clients such as asset management firms, hedge funds, insurance companies, mutual funds and pension funds...

. This allows traders to input trades invisibly to the market

Market

A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers...

, with a crossing price determined by a VWAP

VWAP

In finance, volume-weighted average price is the ratio of the value traded to total volume traded over a particular time horizon . It is a measure of the average price a stock traded at over the trading horizon....

measure. Instinet also enables anonymous conversations and negotiations to take place between bidders, and so reduces informational costs to the participants.

Recent platforms such as Algodeal have been launched to offer individuals the infrastructure to develop, backtest and assess quantitative strategies. Successful strategies are ultimately funded by Algodeal to be traded live on the platform with a share of the profits.

The source of this article is wikipedia, the free encyclopedia. The text of this article is licensed under the GFDL.

External links