What is the cross net?
The cross net is a system that allows buyers and sellers to transfer publicly traded securities without using the public market. The main purpose of these stores is to move a large number of specific security types without affecting the price by a large sale. The cross net is in the form of an alternative trading system (ATS), which means that it is a method of circumventing conventional securities channels approved by the Securities Commission (SEC). As these trades are outside public control, it is easier to violate rules and laws than on normal trading platforms. As a result, SEC sets formal rules on exactly what ATS is and is not allowed to do. These rules keep ATSS under control and provide a common platform for legal trading. In most cases, the cross net has set membership. These members sell each other back and forth without engaging external groups. When a specific security is for sale, the seller may allowAny member to buy it or can limit it to a specific subgroup in the cross net.
In addition to determining potential buyers, the seller may decide to hide his identity. In this case, the identity is only hidden for sales purposes; The cross net keeps close records of who buys and sells on its platform. This allows anonymity to the seller, but protects the network if SEC requests to display information about the sale for the transaction.
Public channel trade, sales that occur during the transition network do not affect the price of security. On a public system, when a large amount of stock is sold, the price will decrease. Contracely, when a large amount is purchased, will cause price to rise. This can have a very noticeable impact on the security value and hence the value of an associated company or commodity.
In some cases the seller wants to avoid changing the price of a particularsafety. For example, SEC has specific laws on internal purchase and sale of the company's shares. While sales of stocks are not illegal internally, it may be an increase or decrease in the value of the company. To avoid gray areas such as this, large stock sales are carried out through the cross network to avoid affecting the public market.