What is the Advanced Computerized Execution System (ACES)?

The Advanced Computerized Execution System (ACES) is a service offered by Nasdaq, the US stock exchange which is best-known as the home of fast-growing tech companies. The system links broker/dealers automatically with market-makers with which they have an established relationship.

Where have you heard about the Advanced Computerized Execution System (ACES)?

As an investor, you may have been made aware of the ACES by your financial adviser, or by studying the literature about Nasdaq. How-to investment guides may mention the ACES, as may the financial media.

What you need to know about the Advanced Computerized Execution System (ACES).

The ACES is a mechanism for the transmission and execution of orders from broker/dealers to buy, sell, deliver or receive specific securities. These orders are passed to market-makers. Under the ACES, the orders are automated between broker/dealers on one hand and market-makers on the other when the two have an established relationship. In effect, the broker/dealer is allowed access to the market-maker's internal trading system in order to carry out the order. The system is then used in reverse, to send a confirmation of the action concerned from the market-maker to the broker/dealer.