Designated Order Turnaround (DOT (SuperDOT))

What Is the Designated Order Turnaround (DOT (SuperDOT))?

Designated order turnaround is an electronic system that increments proficiency by routing orders for listed securities directly to a specialist on the trading floor rather than through a broker. Designated order turnaround is otherwise called DOT or SuperDOT.

Figuring out the Designated Order Turnaround (DOT (SuperDOT))

Designated order turnaround is an order routing system formerly utilized by the New York Stock Exchange (NYSE) in which orders are sent directly to a specialist on the trading floor, subsequently bypassing the broker. Since the 1970s, the vast majority of the orders in the NYSE have been communicated electronically to specialists' screens through the DOT. The DOT system is generally utilized with small order sections, for example, limit orders, and basket and program trades.

Automated trading systems like the SuperDOT have the capacity to execute orders with both speed and exactness, and these systems assist with bringing down the number of errors by eliminating human intervention in the order-taking care of cycle. Automated trading systems likewise give one more layer of security against fraud, subsequently assisting with controlling risk. The system likewise takes into account greater volume on the floor by bypassing commission brokers.

Inside the DOT system, the client, either an investor or a broker, enters the order directly into the system, which then immediately arrives at the specialist. When the order is executed, the client gets a confirmation report of the transaction in real time. Most individual investors don't have direct access to the SuperDOT system, in any case, they indirectly access the system through software or online services offered by brokerage companies that then, at that point, place the client orders into the SuperDOT.

The Super Display Book

The DOT or SuperDOT was replaced by a system known as the Super Display Book (SDBK) in 2009. The SDBK is the NYSE's automated system that displays, records and executes orders for securities.

The SDBK order-routing system is a sophisticated computer program that works with the transmission of both market and limit orders directly to the trading post, and designated market makers, where a specific security is traded. This system considers a more efficient transaction on the grounds that the order can be delivered directly to the market maker as opposed to called down to a floor trader and executed physically. Automated systems like SDBK execute orders with speed and precision and assist with controlling risk.

Floor brokers rarely handle orders placed by individual investors. All things considered, these orders are steered through the SDBK directly to a market maker for immediate execution. Floor brokers typically handle the bigger, more complex institutional trade orders.