automated trading system


Written By: Ehsan Jahandarpour

An automated trading system (ATS) is a computer program that creates orders and automatically submits them to a market center or exchange. Automated trading systems are often used with electronic trading in automated market centers, including electronic communication networks, “dark pools”, and automated exchanges. Automated trading systems and electronic trading platforms can execute repetitive tasks at speeds with orders of magnitude greater than any human equivalent. Traditional risk controls and safeguards that relied on human judgment and manual speeds that were appropriate to manual and/or floor-based trading environments, must now be automated to evaluate and control automated trading.