Specialist System, Definition
The specialist is part of a centralized marketplace, such as the NYSE. The specialist system is commonly used for the exchange trading of securities in which one individual or firm acts as a market-maker in a particular security. The specialist is obliged to provide fair and orderly trading in that security by offsetting temporary imbalances in supply and demand - and in the process trades their own account. Unlike in a decentralized marketplace, the specialist maintains sole control over the spread. See also: Open Outcry.