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 ?
the SEC looked to the Intermarket Trading System (ITS), which began its
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).
Appendix A summarizes key differences in trade-through provisions between the intermarket trading system (ITS) and the OPR and arguments for and against OPR.
Intermarket Trading System (ITS) Plan, (72) and it dictated that the
This was the logic underlying two of the major initiatives growing out of the 1975 act--the Consolidated Quotation System (CQ system) and the Intermarket Trading System (ITS).
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).
The results also imply that the Intermarket Trading System will not result in reduced NYSE spreads purely by enhancing competition between NYSE specialists and regional or OTC market makers unless the system also increases NYSE activity.
The SEC also approved t the Intermarket Trading System ("ITS"), which created a mechanism whereby orders in one exchange could be directed for execution on another exchange if a better price was available there.
Intermarket trading system rules One such regulatory attempt was the adoption of intermarket trading system rules that require securities markets to match the NBBO or route an investor's order to the securities market offering the NBBO.