NASDAQ exchanges use an automated service called ACT or automated confirmation transaction as a reporting service. Brokers and market makers have to enter all the information of their trading activities on the ACT system for matching and clearing. This also includes the trade done over the counter.
NASDAQ compares the trade information entered by the ACT participants and submits locked-in trades to National Securities Clearing Corporation (NSCC). The NASDAQ: ACT at https://www.webull.com/quote/nasdaq-act compares and reports all trade information on exchanges owned and operated by NASDAQ.
Features of automated confirmation transactions
- The Automated Confirmation Transaction or ACT is a service used by NASDAQ exchanges for automated reporting.
- All trade confirmations done by brokers or market makers are to be entered in the ACT system for matching and clearing.
- Trades done over the counter should also be entered into the ACT system.
- Every ACT report must contain relevant information on a particular trade. This information comes in handy when you need to check market data or when auditing takes place.
What does the ACT report contain?
When an ACT report is entered into the system, it should contain the following information:
- SCEID or Security identification symbol of the eligible security
- The number of shares and bonds
- The time is taken for the execution of any transaction in Nasdaq and if it is not reported within 90 minutes
- The party who submits the trade report should put a symbol to give a clear picture of the side he belongs to
- A symbol indicating whether it is a sell or buy
- A symbol for knowing whether it is a principal, riskless principal or agent
These are just a few points that should be present in an ACT report when entered into the ACT system.
What is the ACT?
ACT was developed to increase the transparency of the trading system. NASDAQ: ACT is a platform where you can find all the information regarding the trade of a stock or bond in NASDAQ. It provides faster access to all the data regarding the trade-in NASDAQ. All this can be checked online also.
Who has to participate in the ACT?
It is compulsory for all brokers who are members of a clearing agency to participate in the ACT. The participants of the Act can get access to the services via NASDAQ terminals or through a computer interface. A market maker or MM has to participate in the ACT in compliance with the SEC. NASDAQ: ACT participation can commence the input and validation of trade when Nasdaq receives and implements the ACT participation.
With the implementation of ACT, the market makers and brokers are all entitled to go through the ACT participation, making it transparent. The other advantage is that all the information can be found online. You can buy stocks online after checking more stock news. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.