Another key aspect of the Island plan is that it provides market participants with a competitive and economic incentive to progress to decimals as quickly as practicable. By providing market incentives, the Island plan ensures a timely transition to decimals that will benefit investors. Island's decimalization plan is consistent with the current relationship between Nasdaq and Island. Island already trades in increments finer than the Nasdaq market as a whole and is required to round its quotation information prior to transmission to Nasdaq. Different quote increments already exist within Nasdaq and have not been the source of any system problems or investor confusion.
Island is an automated trading system for equity securities.
It gives brokers the power to electronically display customer orders. Island functions as a pure auction market - directly matching buy and sell orders.