Money Manager Michelle has 30 clients. Each client has their own account at their own broker. Michelle has POA trading authority in each client's account. (This offers the clients some measure of security against fraud: Michelle can place trades but can't wire money in/out of the accounts) Michelle decides to go long ZYXW for her clients today. She places one order with her broker to go long (some large number) of ZYXW. Then she tells her broker how many ZYXW should be doled out to each managed account. Her broker "gives up" pieces of this one trade, to the 30 brokers that hold the individual accounts of Michelle's 30 clients. It's a fun little piece of accounting-rules to decide what to do and how to do it, if Michelle's large order is filled in several pieces at several prices. Which clients get which price? And why? And is it "fair", over the short term and/or over the long term?
What clients get what price is based on some rules so that in the long run nobody has consistently the worst fills. Do most brokers offers this give-up functionality ? Suppose broker A has give-up functionality and broker B gets some of the contracts. How much commission of the commission has broker A to "give-up" ?
Michelle also has another person to watch over besides her 30 clients. Bout time we have a laugh: http://www.youtube.com/watch?v=xVgBxJl_lfQ