Electronic procedure which – without being an exchange – brings together supply and demand for securities, money market instruments or derivatives according to uniform rules with the aim of concluding contracts, as in exchange trading (a trading facility that works by means of an electronic or telecommunications network; and keeps an automated audit trail of bids, offers, and the matching of orders or the execution of transactions on the facility); cf. also § 58 et seq. Stock Exchange Act. – In this process, all buy and sell orders of the licensed members are compared in a central computer system practically around the clock. In addition to banks, central banks, insurance companies, capital management companies and large corporations are increasingly participating in trading in electronic systems. – In Germany, operators of electronic trading systems are subject to supervision by the Federal Financial Supervisory Authority. – See computer evil, derivatives transactions clearing obligation, derivatives transactions reporting obligation, foreign exchange trading, computerized, Eurex, flash crash, witching hour, general collateral repos, trading platform, trading system, multilateral. – Cf. 2001 Annual Report of the Federal Supervisory Office for Securities Trading, p. 46, 2009 Annual Report of BaFin, p. 177 f. (the increase in alternative trading systems raises special supervisory issues).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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