What is NASDAQ Intermarket?

Nearly billions of dollars worth of trading take place regularly on massive stock exchange Some of the top exchanges in the market include the Bombay Stock Exchange (BSE), National Stock Exchange (NSE), National Association of Securities Dealers Automated Quotation (NASDAQ), and New York Stock Exchange (NYSE), and many others. Some trading platforms offer the facility to interact and communicate online. NASDAQ Intermarket offers that and more. This article elaborates on the NASDAQ Intermarket and executing aspects in brief.

What is NASDAQ Intermarket?

There are two types of markets in stock trading - primary market and secondary market. In the former, the investors buy shares through an IPO, and in the latter, they buy in the stock exchanges. The NASDAQ stock exchange deals with particularly technology-related stocks. The NASDAQ Intermarket is a connecting bridge between traders and companies. It acts as an electronic medium where investors can trade shares on the stock exchange.

Along with that, the platform also enables you to partake in networking and interacting with members dealing with such trades in distinct markets. Administered by NASDAQ, the info of the trades are all connected to trading floors of seven to nine top stock exchanges. These are linked through the Intermarket Trading System (ITS), allowing traders to have access to buy and sell shares on exchanges like the New York Stock Exchange, American Stock Exchange, Boston Stock Exchange, and a few big leagues.

By using the NASDAQ Intermarket Trading System (ITS) channel, investors or traders can get to know the market prices of the shares in real-time. The NASDAQ Intermarket also helps traders in making swift investment decisions by keeping them informed about the ongoing activities in the share market.

The floor brokers can reach the members and execute the deal via NASDAQ Intermarket at any time that the quote seems worthy. Moreover, the NASDAQ Intermarket boosts liquidity, aids in generating additional capital for investing, gains access to a wide number of traders, and enhances competition between the traders and in the market.

NASDAQ Leaves Intermarket

The NASDAQ Intermarket system came into the market in the 1980s, allowing buyers and sellers to make trades smoothly on multiple exchanges at a time. During that period, the floor traders used to do the trading tasks manually rather than electronically. That’s when the NASDAQ Intermarket was created to simplify the trade works. In 2005, the NASDAQ Intermarket plugged out from the market after operating for more than two decades.

The reason is due to the advent of upgraded technologies in the digital world. Now, trades take place digitally in just a matter of split seconds, giving the buyers and sellers the required real-time information. Additionally, the technology has helped in onboarding millions of investors effortlessly, which can be a challenging task if approached manually. It also introduced numerous ways and methods to carry out trade activities swiftly.

Post-withdrawal from the system, the NASDAQ Intermarket has joined hands with Brut LLC, an electronic communication network (ECN) to uplift the trading process. This move by NASDAQ is to create an ocean of liquidity and improve connectivity between the traders and exchanges. With the help of Brut infrastructure and tools, the investors or traders can gain entry beyond the NASDAQ market centre too.

By steering away from Intermarket Trading System (ITS) to a much more stable network like Brut LLC entitled NASDAQ to attain a wider market across multiple exchanges. Subsequently, this resulted in efficient trading in the market.

NASDAQ Market Center Execution System

Currently, NASDAQ is running and operating on a distinct trading platform of its own known as the NASDAQ Market Center. This platform helps both buyers and sellers to conduct their trades transparently. The electronic communications network managed by Brut LLC processes the trading orders automatically online.

The Brut LLC is amalgamated with various NASDAQ Market Centers that trade the securities available on NASDAQ. After joining hands with Brut LLC, NASDAQ added quality trading systems like SuperMontage and INET to build an eclectic platform. This is referred to as a single book and is now called the Nasdaq Market Center Execution System.

Today, NASDAQ is one of the most popular electronic exchanges in the world, conducting more than a billion trades every single day. Even top MNCs like Apple, Intuit, Baidu, Analog Devices, Cognizant, NVIDIA, and a few other great technology players are listed here. There are more than 3,300 companies available on the NASDAQ exchange.

After the 1980s when the technology industry grew by folds, the NASDAQ bolted its visibility in the market, becoming the leading exchange in the world. In a nutshell, NASDAQ contains companies across multiple industries like healthcare, technology, retail, etc.

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Frequently Asked Questions Expand All

The NASDAQ Intermarket is a global market space that integrates traders and companies through an electronic medium called Intermarket Trading System (ITS). It facilitates the trade between buyers and sellers, granting them access to myriad stock exchanges like NYSE, American Stock Exchange, and a few others. You can also participate in networking with other traders on the online platform.

The NASDAQ is a leading electronic platform that comprises tech stocks followed by other sectors from healthcare, retail, and a few others. The trading space enables the buyers and sellers to trade shares across various exchanges via NASDAQ Intermarket, which is now called the NASDAQ Market Center Execution System. The NASDAQ carries out operations in 25 markets, followed by a clearinghouse and 5 central securities depositories. NASDAQ OMX, the platform conducts its operations in 25 markets like the NASDAQ. They deal in equities, fixed income securities, derivatives, commodities and a few others. The state-of-art technology of the NASDAQ OMX is put into use by 90 stock exchanges globally. It is traded on NASDAQ and OMX Nordic Exchange.