Auto-execution with legacy brokers

Discussion in 'Order Execution' started by erlewine, Mar 11, 2006.

  1. Is anyone aware of a thread or site that discusses auto-execution policies of old-school/legacy brokers (that have their own internal order routing, usually to market makers/regionals in exchange for payment for order flow) i.e. etrade, brown, etc?

    I know things have changed a good deal from a few years ago, but my guess is picking off dealers on stale quotes is still a viable strategy since brokers have no choice but to demand auto-ex from affiliated dealers to keep their order execution stats (TAG reports, etc...) kosher.
     
  2. Clearing firms/broker-dealers have always been notoriously tight-lipped about such arrangements.

    Most are specifically designed to contravene...
    The "get best execution for customer" ** legal requirement **...
    And instead fleece the lambs and pad margins at every opportunity.

    I used to be a B/D and my clearing firm would lie to me as a matter of course.
    I've been with IB for about a year...
    And I must say that IB has never lied to me.

    rm+

    :cool: :cool: :cool: