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The retail brokers contend that the internalizers allow them to get the quickest and best execution for their customers.
Last year, the S.E.C. found, more than half were not meeting their obligation to provide the best execution for their customers' trades.
"Our number one priority is getting best execution for our customers".
Online trading firm Datek asks in one current ad: "Are you getting the best execution for your trade?" Who knows?
In fact, an SEC study last year found 17 of 29 online brokers were placing more importance on securing their flow payments than on getting the best execution for their customers.
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Mr. Levitt also has questioned whether brokers who engage in "payment for order flow," in which a brokerage is paid for letting another firm fill its orders, are getting the best executions for their customers.
There appears to have been some creative legal thinking that suggested that Finra's requirement for "best execution" of trades would bar executing trades in illiquid markets at prices the broker deemed unreasonable.
A decade ago, there was an obligation for "best execution" of orders.
What does "best execution" mean for products that are traded off-exchange?
Scheduling aims at finding the best execution time for a given implementation strategy.
Also included is a cost-based optimizer which automatically selects the best execution strategy for each job.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com