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"If you're just executing a trade, you can sometimes negotiate low commissions with a full-service broker," he said, especially when a block of stock is involved.
First, there are algorithms designed not to lose money while executing a trade that's been placed by a human.
While the executive stopped short of saying Goldman would convert to an agency trading model -- which matches buyers and sellers before executing a trade -- he did indicate the bank would start buying securities at lower prices and selling them at higher prices to reflect the risk of taking on trades.
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Both buyers and sellers would pay the exchange for the opportunity to execute a trade.
Then he turned his back and jumped into the pit to execute a trade.
The Big Board panel determined that he had executed a trade that was designed to inflate the price of a stock he already held.
Scene II: The day before the snow-delayed season opener in 1982, the Yankees execute a trade for Roy Smalley, the Minnesota Twins' shortstop.
They found that fewer than half of institutional commissions were allocated by those who actually do the trading—and it is these who probably have the best idea where to execute a trade most effectively.
According to Bloomberg News, the exchange erroneously executed a trade of 100 shares of Apple that drove the iPhone maker's shares down sharply, to $542.80, triggering the circuit breaker on the stock.
It is common for several hedge funds to execute a trade, each assuming it has access to, say, the 1m shares in Citigroup that Morgan Stanley has announced it has available to lend.
The length of time that it takes to execute a trade on the New York Stock Exchange's most popular platform has dropped from 3.2 seconds to 48 milliseconds, according to Celent.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com