Direct Market Access
Direct Market Access(commonly shortened to DMA) is a term used infinancial marketstodescribeelectronic tradingfacilities that giveinvestorswishing totradeinfinancialinstrumentsa way to interact with theorder bookof anexchange. Normally, trading on theorder book is restricted tobroker-dealersandmarket makingfirms that are members of theexchange.
Using DMA,investment companies(also known asbuysidefirms) and other privatetradersutilise theinformation
banksand the market access that those firms have, but control the waya trading transaction is managed themselves rather than passing theorder over to the broker's own in-house traders for execution.