An automated trading system that facilitates electronic trading between brokers/dealers who are participants of the system by allowing market makers to send orders directly back and forth to one another. It operates with the exchange logic that when a member receives an order offer, the member can either accept, reject or counteroffer the original offer.
Investopedia Says:
The SelectNet system helps keep the financial markets running as efficiently and quickly as possible, improving the liquidity of the overall system and keeping transaction costs at a minimum.
Most of the time, individual investors will not hear about SelectNet in the financial news, as it is typically not relevant to the small and limited number of trades that individual investors make.
Related Links:
Find out the answers to all the questions you had about stock exchanges but were afraid to ask! Getting to Know Stock Exchanges
Learn the pros and cons of trading forex through these two types of brokers. Trading Through A Market Maker Vs. An ECN
The way trading is conducted is changing rapidly as exchanges turn toward automation. The Global Electronic Stock Market
Find out what's happening in a given stock with this service showing Nasdaq market makers' best bid and ask prices. Introduction To Level II Quotes
Find out the various ways in which a broker can fill an order, which can affect costs. Understanding Order Execution
