
Intermarket Trading System (ITS)
The Intermarket Trading System (ITS) was an electronic network that linked the trading floors of nine American stock exchanges. The NYSE stopped using it in 2000 and NASDAQ in 2006. The Intermarket Trading System (ITS) began operations in 1978, at a time when trading was a manual process handled by traders working on a trading floor. The ITS linked prices on the New York Stock Exchange (NYSE), the American Stock Exchange, the Boston, Chicago, Cincinnati, Pacific, and Philadelphia exchanges, as well as the Chicago Board Options Exchange (CBOE) and the National Association of Securities Dealers (NASD). The Intermarket Trading System (ITS) was an electronic network that linked the trading floors of nine American stock exchanges. The Intermarket Trading System (ITS) was an electronic network that linked the trading floors of nine American stock exchanges.

What Was the Intermarket Trading System (ITS)?
The Intermarket Trading System (ITS) was an electronic network that linked the trading floors of nine American stock exchanges. Brokers and market makers on any of the linked exchanges could use ITS to find and execute the best price available. A broker on the floor of one exchange could directly place an order through ITS rather than going through a broker on another exchange.
The ITS linked prices on the New York Stock Exchange (NYSE), the American Stock Exchange, the Boston, Chicago, Cincinnati, Pacific, and Philadelphia exchanges, as well as the Chicago Board Options Exchange (CBOE) and the National Association of Securities Dealers (NASD). In 2000, the NYSE stopped using ITS and Nasdaq stopped using it in 2006.



Understanding the Intermarket Trading System (ITS)
The Intermarket Trading System (ITS) began operations in 1978, at a time when trading was a manual process handled by traders working on a trading floor.
ITS started being phased out in 2000 when the NYSE decided it would no longer be using the antiquated system. Notably, the NASDAQ left the partnership in 2006, having decided that the technology was outdated and, in any case, was unsuited to an exchange that does not have a trading floor.
Since then, new and more innovative systems have emerged for conducting trade activity in a fast, connected atmosphere.
In announcing its withdrawal from the ITS, NASDAQ cited the outdated setup of the system and said a private and more technically advanced system would be a better option. That position aligned perfectly with NASDAQ’s then-new acquisition of Brut, LLC, which maintained an electronic communications network.
Its withdrawal from the ITS allowed the NASDAQ to improve its technology and order-routing systems without needing to go through an approval process that included other exchanges. Private linkage also enabled NASDAQ to better handle the increasing flow of orders coming from electronic traders.
The NASDAQ now has a platform that uses an electronic communications network, or ECN. The ECN enables open-access communication and trading activity. Systems are linked to other market centers that are trading NASDAQ securities, along with other national securities exchanges, including the NYSE.
NASDAQ has integrated its ECN system with other tools, including SuperMontage and INET, to form a comprehensive system that came to be known as the NASDAQ Market Center Execution System.
Related terms:
Acquisition
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Consolidated Tape
Consolidated tape is an electronic system that collates real-time exchange-listed data, such as price and volume, and disseminates it to investors. read more
Electronic Communication Network (ECN)
ECN is an electronic system that matches buy and sell orders in the markets eliminating the need for a third party to facilitate those trades. read more
Nasdaq Intermarket
Nasdaq Intermarket was an electronic marketplace where National Association of Securities Dealer members could trade, communicate, and receive quotes. read more
NYSE Arca
NYSE Arca is an electronic securities exchange in the U.S. on which exchange-traded products and equities trade. read more
New York Stock Exchange (NYSE)
The New York Stock Exchange, located in New York City, is the world's largest equities-based exchange in terms of total market capitalization. read more
Pacific Exchange (PCX)
The now-defunct Pacific Exchange (PCX) was one of four U.S. exchanges to trade equity options and the first to implement an electronic trading system. read more
SuperMontage
A SuperMontage is a fully integrated order display and execution system for the trading of Nasdaq-listed securities. read more