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Definition Of Order Audit Trail System - Oats:


An automated computer systemownedby the National Association of Security Dealers (NASD)that is used to record information relating to orders, quotes and other related trade information from all equities that are traded on the Nasdaq, includingover the counter (OTC) stocks.
This system simplifies an order's progression from the initial receipt of the order to its eventual execution or cancellation, so that itcan be easily tracked for auditing purposes.The NASD created OATS to ensure that the time sensitive informationrelating to the events throughout the order execution processis recordedaccurately.For example, according to NASD rule 6953, all "computer clocks and timestamping devices must be synchronized to be withinthree seconds of the National Institute of Standards and Technology atomic clock". (This atomic clockis highly accurate; it will not gain or lose one second of time in more than 60 million years).

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