Automated Confirmation Transaction Service - Explained
What is an Automated Confirmation Transaction Service?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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What is an Automated Confirmation Transaction Service?
An Automated Confirmation Transaction Service (ACTA) is a system for reporting all securities transactions done in the over-the-counter (OTC) and NASDAQ securities markets. ACT is an electronic system that makes adequate documentation of reporting and clearing of trades in the Nasdaq market. This system was a faster alternative to the Trade Acceptance and Reconciliation Service that was previously used. ACT is otherwise called ACT Service.
How Does an Automated Confirmation Transaction Service Work?
Nasdaq began the use of ACT service in 1998 before it was developed, the Trade Acceptance and Reconciliation Service (TARS) performed the same function as ACT. The central goal of the automated confirmation transaction service is to enhance transparency and accountability in the NASDAQ markets. ACT is also a system that monitors and records all clearing of trades in the NASDAQ markets and over-the-counter (OTC).