The Integrated Trading System (ITS)

Exchange traded options and futures are traded on a screen based trading system called the Integrated Trading System (ITS). Brokers have terminals in their office from which they can view the market, and execute trades with the click of a mouse button.

The ITS is a modified version of the CLICK system developed by OMX Technology, a company that provides exchange technology to over 24 international exchanges and clearing houses. CLICK is used by many exchanges around the world and is recognised as the leading automated trading system for derivatives.

Why was the screen based trading introduced?

An important change brought about by screen based trading is the switch to an order-driven market where the prices on the screen represent firm orders submitted by traders.

Until screen based trading commenced operation on 31 October 1997, options were traded on a system of open-outcry on the trading floor. Under the open-outcry system, traders provided quotes that were merely indicative, and which could not be dealt on until both parties agreed to trade.

The move to the order-driven ITS system means that trades are now executed automatically on a price/time priority basis.

How does the ITS work?

Orders are entered into a Participant’s ITS terminals and transmitted to the market via the ASX’s host computer which in turn sends the order to all Participants’ terminals.

Orders are then executed on a price and time priority basis. Execution is performed by responding to a bid or offer that appears on the ITS screen in the current market.

The following online demos takes you through a hypothetical options or futures trade. Please allow about 20 seconds for each demo to load. You are not required to download software to view these demonstrations.

Each demo takes around three minutes.

View an Options Trade
View a Futures Trade

Who uses the ITS?

The ITS links brokers across Australia through screens in Participants’ offices. The ITS is operated in each Participants’ office by a Designated Trading Representative (DTR) registered by ASX