What Is an Interdealer Quotation System (IQS)?

An interdealer quotation system (IQS) is an electronic system for organizing and disseminating price quotes by brokers and dealer firms. IQSs are intended to provide investors with๊ timely and relevant market information on which to base their investment d♛ecisions.

In the United States, the National Association of♋ Securities Dealers Automati🎃c Quotation (Nasdaq), Nasdaq SmallCap Market, and the 澳洲幸运5官方开奖结果体彩网:Over-The-Counter Bulletin Board (OTCBB) exchange platforms are integrated into one IQS. By using this integrated system, investors have access to a wide range of securities, ranging from large 澳洲幸运5官方开奖结果体彩网:blue-chip companies to smaller 澳洲幸运5官方开奖结果体彩网:micro-caps.

Under🐷standing an Interdealer Quotaꦦtion System (IQS)

An IQS functions by tying together the price 澳洲幸运5官方开奖结果体彩网:quotations of various exchanges into one platform. This allows investors to more easily access security price quotations that would otherwise need to be monitored on several separate exchanges. As such, the creation of an IQS promotes the 澳洲幸运5官方开奖结果体彩网:liquidity and accessibility of financial markets.

The exact specifications of an IQS will depend on the specific focus of its constituent exchanges. For example, the OTCBB displays quotes, last sale price, and volume information for many 澳洲幸运5官方开奖结果体彩网:over-the-counter (OTC) securities that are not otherwise listed on national securities exchanges like the New York Stock Exchange (NYSE). The securities listed on the OTCBB include domestic and foreign companies, as well as 澳洲幸运5官方开奖结果体彩网:American depository receipts (ADRs). The OTCBB, and other OTC exchanges, are sometimes referred to as "澳洲幸运5官方开奖结果体彩网:pink sheets."

Another way that an IQS can benefit investors is by enabling a higher level of 澳洲幸运5官方开奖结果体彩网:regulatory oversight. For instance, the OTCBB requires broker-dealers to qualify as 澳洲幸运5官方开奖结果体彩网:market makers under the rules of the 澳洲幸运5官方开奖结果体彩网:Financial Industry 🧸Regulatory Authority (FINRA) before being able to quote securities on the OTCBB. Similarly, companies who have to have their securities quoted on the OTCBB must obtain sponsorship from a market maker and file regular financial reports with regulators, such as the 澳洲幸运5官方开奖结果体彩网:Securities and Exchange Commission (SEC).

Examples of Interdealer Quotation Systems (IQS✅s)

Another example of an IQS is OTC Link, which provides quotations focused on small and thinly traded securities. The securities traded through OTC Link do not have any eligibility requirements and often do not provide timely financial disclosures to regulators.

At the other end of the spectrum is the Nasdaq, which is home to over 3,000 technology companies. The com🧸panies that trade on the Nasdaq exchange are generally large and established businesses, and in some cases are among the largest companies in the world.🎃

Examples of prominent Nasdaq-listed companies include Amazon, Google, and Micros♉oft. Unlike their OTC counterparts, these securities are highly liquid and regularly file financial statements and other informatꦏion with the SEC.