Using your phone's internet browser
go to:  qna.rediff.com
Click and drag this link to
the Home icon in your browser.
Q.

What is direct Market Access?

Tags: direct market access
Asked by jameel ahmed, 18 May '08 04:29 pm
  Invite a friend  |  
  Save  |  
 Earn 10 points for answering
Answer this question  Earn 10 points for answering    
4000 characters remaining  
  
    
Keep me signed inNew User? Sign up

Answers (3)

 
1.

The Issue Defined: The buy side is taking more control of its trading decisions while looking for faster, lower-cost and anonymous executions. Direct market access (DMA) tools permit buy-side traders to access liquidity pools and multiple execution venues directly, without intervention from a broker's trading desk.
Why It's Important: DMA has been rapidly adopted by institutional traders as a method to aggregate liquidity that is fragmented across U.S. execution venues. Buy-side customers, under regulatory pressure, are also seeking best execution and greater control over their trading strategies. With DMA, they are renting a broker's infrastructure and clearing via the broker, but they are controlling the order. The real motivation for aggressive DMA trading on the buy side is cheaper commissions - DMA commissions are about one cent a share, while program trades cost roughly two cents a share and block trades cost four cents to five cents per share.

Where the Industry Is Now: ...more
Answered by mohd yousuf, 19 May '08 12:20 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
2.

Direct Market Access (DMA) is a service offered by some stockbrokers that enables sophisticated private investors to place buy and sell orders directly on the stock exchange without brokers.
Answered by Saj Sierra, 18 May '08 04:31 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
3.

Direct Market Access (DMA) refers to electronic facilities that allow buy side firms to more directly access liquidity for financial securities they may wish to buy or sell. Using DMA, the firms still use the infrastructure of sell side firms but take over more of the control over the way a transaction ("trade") is executed.
Answered by fiona dsylva, 18 May '08 04:34 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received

Ask a Question

Get answers from the community

600 characters remaining

Related Answer

Q.