ACT Automated Transaction Comparison Service
What is a ACT Automated Transaction Comparison Service
The ACT system is the automated-transaction-comparison-service. ACT provides the matching, reporting to the tape and clearing of trades executed through NASDAQ and other OTC environments.
SecuritiesCE Explains ACT Automated Transaction Comparison Service
When securities are traded through the NASDAQ system these trades must be properly reported to the tape and must be matched and cleared between the accounts of the buying and selling broker dealers. Trades maybe reported to the ACT system automatically through the NASDAQ work station or they may be entered manually and accepted by the parties to the trade.ACT transactions include:
Nasdaq Global Market and Capital Market securities
Non-Nasdaq OTC securities
Third-market CQS trades ( third market trades)
Nasdaq convertible bonds
Internal clearable transactions
All transactions must be reported to ACT as soon as practical but no latter than 10 seconds from the trade.