American Stock Exchange (Amex) has launched its new proprietary trading system, Nets, which can trade any equity-based product in the US, regardless of the exchange on which a company or product is listed.
The new system allows for the trading of all equities and the ability to trade the underlying stock in an option via unlisted trading privileges.
The system offers faster execution with a guaranteed locked-in trade, as well as automated tick-sensitive orders and stop and stop limit order types. Amex specialists will receive visual alerts notifying them on a real-time basis of market conditions in the securities they are responsible to trade.
Ralph Rafaniello, executive vice president of Amex market operations, says: "Via straight-through processing of all transactions and a guaranteed locked-in trade, orders delivered to an Amex specialist will be guaranteed price and time priority, ensuring the proper execution price."
Brian Halloran, vice president of Amex market operations, adds: "We've gained significant efficiencies by streamlining the execution process and automating key components of the trading application thus making it easier for our specialists and customers to trade on the Amex."
Nets marks the first step in the overhaul of Amex's entire trading platform. The company aims to enhance its existing auction market by implementing new technologies that are designed to automate order interaction and provide expedient executions, while maintaining superior price discovery and execution prices.
The Nets rollout includes the integration of the Nasdaq equity trading system, at no cost to the Amex's customer base.
Specialist migration to the new system has begun, using a phased-in approach on an individual basis. Nets terminals are to be phased-in over the next nine months, with the target of Spring 2003 for complete integration.
Nets is based on Amex's original Option Display Book system (AODB), and was built in partnership with OM and the Securities Industry Automation Corp.