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With algo-trading, traders feed their client's order into their computer which executes the trade.
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"Marc calculates the number of shares to be bought and sold to effect the rebalance to MyPlanIQ specified percentages, then executes the trades," Mr. Adamy said.
This will save the increasingly important program traders precious nanoseconds between sending an order and executing the trade.
Regulators are trying to determine Mr. Miller's motives and how he was able to execute the trade at all.
When it places orders using that method, Calpers pays only 2 cents a share to the brokers who execute the trade.
At the moment regulators can only see the broker who executed the trade, which makes it easier for dodgy trades to go undetected.
One recording that featured Dean Atkins — a former employee of ABN Amro, which helped execute the trade — could prove helpful to the S.E.C.
Iranian Turkish businessman Reza Zarrab, a key prosecution witness, told the jury Thursday that Erdogan had personally given an order to execute the trade.
The internalizers will execute the trade only if their market intelligence tells them that the market is about to move in their favor, allowing them to quickly flip the trade.
The algorithm was programmed to execute the trade "without regard to price or time," the report said, which meant that it continued to sell even as prices dropped sharply.
The Financial Industry Regulatory Authority, or Finra, put out a regulatory notice last week cautioning brokers that if a customer really wants to place a sell order, the broker must execute the trade.
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