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Simple English definitions for legal terms
Automated Bond System
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A quick definition of Automated Bond System:
Automated Bond System: A computer network used by the New York Stock Exchange that allows people to buy and sell bonds electronically. It's like a big online store for bonds where people can see the prices and make trades without having to talk to a person.
A more thorough explanation:
The Automated Bond System (ABS) is a computerized network created by the New York Stock Exchange. It allows subscribers to electronically send quotes and execute orders for bond trades.
For example, if an investor wants to buy a bond, they can use the ABS to search for available bonds and place an order. The ABS will then match the investor's order with a seller's offer and execute the trade.
The ABS makes bond trading faster and more efficient by eliminating the need for manual processes and paperwork. It also provides greater transparency and accessibility to bond markets.