| An electronic communications network that links nine markets -- the New York (NYSE), American (AMEX), Boston (BSE), Chicago (MSE), Cincinnati (CSE), Pacific (PSE) and Philadelphia (PHLX) stock exchanges, the Chicago Board Options Exchange (CBOE), and the NASD. The system enables market professionals to interact with their counterparts in other markets whenever the nationwide Consolidated Quote System (CQS) shows a better price.
ITS was inaugurated on a pilot basis on April 17, 1978 with the New York and Philadelphia exchanges trading 11 stocks. During mid-1978, four other exchanges joined the system. Gradually, more issues were added. The Cincinnati Stock Exchange joined in February 1981. The NASD became a participant on May 17, 1982 when an experimental linkage between ITS and CAES, an automated system operated by the NASD, was ordered by the SEC. This pilot was originally limited to 30 listed stocks (23 on the NYSE and 7 on the AMEX) in which SEC Rule 19c-3 permits exchange member firms to make dealer markets in away from any exchange trading floor. The Chicago Board Options Exchange joined on February 20, 1991.
The 3,293 issues eligible for trading on ITS at the end of 1994 represented most of the stocks traded on more than one exchange. Of these stocks, 2,817 are listed on the New York Stock Exchange and 476 on the American Stock Exchange.
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