intermarket trading

Intermarket Trading

Trading a single security on two different exchanges. For example, one may buy a stock on the American Stock Exchange and sell it on the NYSE. Intermarket trading is a fairly common arbitrage strategy, whereby one takes advantage of the difference in price on the same security on two different exchanges in order to make a profit.

intermarket trading

Trading that occurs between two or more markets. For example, an individual might engage in arbitrage by purchasing stock index futures on one exchange and then selling options on the same futures on another exchange.
References in periodicals archive ?
Intermarket trading will be available with other global exchanges that offer the contract, and will be tax free (no transaction tax and no capital gains tax).
1986: NSX introduced the first automated exchange interface with the Intermarket Trading System (ITS), which enabled its members to interact electronically with all other markets to get the best possible execution prices for their public customers.
It has access to the other perquisites of exchange status -- most notably, the intermarket trading system that links the regionals and New York, and tape revenue (the money exchanges are paid every time they put a trade on the data feed).
It introduces custom indicators and Intermarket based systems using basic mathematical and statistical principles to help traders develop and design Intermarket trading systems appropriate for long term, intermediate, short term and day trading.
NASDAQ) today announced its intention to withdraw from the Intermarket Trading System (ITS) Plan in 2006 upon implementation of Regulation NMS.
Scheckel said OES, which is positioned to be a significant private linkage player in the replacement of the Intermarket Trading System (ITS), has recently entered into agreements with a number of market centers and major brokerage firms to provide smart routing and other value-added services that enhance its clients' competitiveness in the current and post-Reg NMS securities industry.
NSX introduced the first automated exchange interface with the Intermarket Trading System (ITS), enabling its members to interact electronically with all other markets to get the best possible execution prices for their public customers.
Barth has participated as an exchange representative in various national market system committees, including the Consolidated Tape Association and the operating committees of Intermarket Trading System and NASDAQ UTP Plans.
NSX introduced the first automated exchange interface with the Intermarket Trading System (ITS), enabling its members to interact electronically with all other stock exchanges to get the best possible execution prices for their public customers.
David Scheckel, president of OES, said his company "has been working with a number of exchanges and market centers over the last year, acting as their replacement for the outdated Intermarket Trading System (ITS) and providing direct electronic linkage to the regional exchanges.
Also included among its many innovations, NSX introduced the first automated exchange interface with the Intermarket Trading System (ITS).
This allows exchanges to both receive order flow and route away to support intermarket trading," said Candyce Edelen, vice president of business development at IBSN.