Dictionary of Finance and Investment Terms: level I, II, III
level I, II, III
levels of service available to firms trading NASDAQ stocks. Level I provides a single median quote and is intended for firms not engaged in trading over-the-counter stocks, such as the OTC Bulletin Board service and other market news vendors. Level II is a component of NASDAQ Workstation II, a network of workstations providing quotations, executions, trade reporting, and trade negotiations and clearing. Level II provides current bid and offer quotes by all market makers for firms trading for themselves and for customers. Level III, designed for market makers, provides Level II services plus the ability to enter quotations, direct/execute orders, and send information.
