A friend of mine who is an older guy in his late 70's still uses a full serivce broker to purchase fund shares mainly. The other day he decided to go long SPY and called his broker to place the order, business as usual that is. To make a long story short, when my friend got his trade report back at the end of the day he noticed that it was executed almost 6 minutes after he placed the order. He called the broker to ask about the delay and he got an email back saying something like this: "Took 6 mins to build the basket, pass to trader, and get this in the market." I'm not familiar with ETF's. I trade futures mainly and forex through IB. All electronic and instant executions for most part. Can anyone explain what the above statement by the broker means? Do they have to build a basket when they trade the ETF? John Edit: I forgot to add that the difference in price from the time my friend placed the order to the time it was filled was $500 against him.