SuperDot
Encyclopedia
SuperDot was the electronic system used by the New York Stock Exchange
to route market orders and limit orders from investors or their agents
to a specialist
located on the floor of the exchange. SuperDot was the upgraded form of the previous electronic system used to route orders, known as the Designated Order Turnaround (DOT) system. Since 1976, most of the orders in NYSE had been transmitting electronically to specialists screens over the DOT or via the upgraded SuperDot. In 2009, SuperDOT was replaced by the new NYSE Super Display Book system for processing orders.
The user, either an investor or a broker, used to enter the order into the system, which immediately reached the specialist to be executed. The users received a confirmation report of the transaction in real time, once the order was executed. Most individual investors never had direct access to the SuperDot system. However, they indirectly utilized the system through software or online services offered by brokerages that in turn placed the client orders into the SuperDot.
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
to route market orders and limit orders from investors or their agents
Broker
A broker is a party that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal...
to a specialist
Market maker
A market maker is a company, or an individual, that quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on the bid-offer spread, or turn. From a market microstructure theory standpoint, market makers are net sellers of an option to be...
located on the floor of the exchange. SuperDot was the upgraded form of the previous electronic system used to route orders, known as the Designated Order Turnaround (DOT) system. Since 1976, most of the orders in NYSE had been transmitting electronically to specialists screens over the DOT or via the upgraded SuperDot. In 2009, SuperDOT was replaced by the new NYSE Super Display Book system for processing orders.
The user, either an investor or a broker, used to enter the order into the system, which immediately reached the specialist to be executed. The users received a confirmation report of the transaction in real time, once the order was executed. Most individual investors never had direct access to the SuperDot system. However, they indirectly utilized the system through software or online services offered by brokerages that in turn placed the client orders into the SuperDot.