News
November 6th 05, 05:10 PM
I am posting this report concerning order flow
for those few investors that may be interested.
The SEC requires public disclosure under Rule
11Ac1-6 by stockbrokers for the routing of
customer orders for "non-directed orders".
These are orders for which the customer has
not specifically instructed to be routed to a
particular venue for execution. A majority of
all customer orders, probably 85% or more,
are non-directed. This report includes private
investors and large institutions.
The information for this report came from two
companies that provide audit services for brokers.
They are Market Systems, Inc. and Transaction
Auditing Group, Inc. To view a list of the brokers
included in this report go the website of these auditors.
www.tagaudit.com/rgviewpub.asp
www.marketsystems.com/msi/reports/index.html?clientid=ssic
There are about 350 of the largest brokers doing
business as a public retail broker or institutional broker.
These include Scottrade, Edward Jones, Raymond James,
Securities America, Royal Alliance and A. G. Edwards.
Also, most of the clearing firms that execute and clears
transactions for thousands of small brokerages. These
includes Southwest Securities, First Clearing, Penson,
Legent, Larkin, Mesirow, and Computer Clearing. In
addition, most of the large wire houses that transacts
for institutions are included such as Prudential, Lehman
Brothers, Merrill Lynch, J.P. Morgan, Brown Brothers
Harriman, Cantor Fitzgerald, Credit Suisse First Boston,
and Abn Amro. Several of the largest regional brokers
included are Morgan Keegan, W. R. Hambrecht, Wells
Fargo, Piper Jaffray, R. F. Lafferty, Sun Trust, RBC Dain
Rauscher, Sanford C. Bernstein, Scott Stringfellow, S. G.
Cowen, Stephens, Punk Ziegel, MetLife, J.J.B. Hilliard W.L.
Lyons, Ladenburg Thalmann, Miller Tabak, Harris Nesbitt,
Janney Montgomery Scott, Jesup Lamont, Citigroup, Daiwa,
Advest, BNY Brokerage, Barclays, C.E. Unterberg
Towbin, Crowell Weedon, and D.A. Davidson.
Why did the SEC think routing of orders were important
enough to warrant a disclosure of the routing practices?
The brokers with the public orders are in a position to
make (price) securities. They are not known as
market (price) makers for nothing. Hope the report
will help those investors/traders that use Level 11.
NEW YORK STOCK EXCHANGE
Specialist 57.337%
Knight 12.186
Madoff 6.958
Others 6.610
Auto Desk 2.985
ARCH/EX 2.850
Chicago Stock Ex. 2.595
BSX 2.057
INET 1.661
Pershing .999
Other Exchanges .694
NYFIX Millenium .539
Bear Stearns .506
Helfant .396
AMERICAN STOCK EXCHANGE
Specialist 52.050
Knight 18.219
Others 9.312
ARCH/EX 8.332
Auto Desk 2.131
INET 1.875
Other ECNs 1.611
Madoff 1.491
BSX 1.028
UBS Capital .075
Credit Suisse .063
NASDAQ
Other Brokers 25,452
Knight 15.064
ARCH/EX 11.272
Bear Stearns 10.007
Schwab 6.148
INET 4.690
UBS 4.634
National Financial 4.349
Auto Desk 4.173
Other ECNs 2.244
BRUT 2.042
Super Montage 1.955
Madoff 1.913
Pershing 1.858
B-Tradebook 1.224
Morgan Stanley 1.106
Wachovia .650
Citigroup .605
CIBC World .604
The market (price) makers listed above are
the major players in each of these markets.
Other Brokers in NASDAQ is large due
to the type of market it is whereby there
are a lot of market (price) makers in OTC
stocks but none are of are a major factor.
The ECNs are becoming a major factor
in the securities markets, especially when
the direct access trading is added into the
equation.
for those few investors that may be interested.
The SEC requires public disclosure under Rule
11Ac1-6 by stockbrokers for the routing of
customer orders for "non-directed orders".
These are orders for which the customer has
not specifically instructed to be routed to a
particular venue for execution. A majority of
all customer orders, probably 85% or more,
are non-directed. This report includes private
investors and large institutions.
The information for this report came from two
companies that provide audit services for brokers.
They are Market Systems, Inc. and Transaction
Auditing Group, Inc. To view a list of the brokers
included in this report go the website of these auditors.
www.tagaudit.com/rgviewpub.asp
www.marketsystems.com/msi/reports/index.html?clientid=ssic
There are about 350 of the largest brokers doing
business as a public retail broker or institutional broker.
These include Scottrade, Edward Jones, Raymond James,
Securities America, Royal Alliance and A. G. Edwards.
Also, most of the clearing firms that execute and clears
transactions for thousands of small brokerages. These
includes Southwest Securities, First Clearing, Penson,
Legent, Larkin, Mesirow, and Computer Clearing. In
addition, most of the large wire houses that transacts
for institutions are included such as Prudential, Lehman
Brothers, Merrill Lynch, J.P. Morgan, Brown Brothers
Harriman, Cantor Fitzgerald, Credit Suisse First Boston,
and Abn Amro. Several of the largest regional brokers
included are Morgan Keegan, W. R. Hambrecht, Wells
Fargo, Piper Jaffray, R. F. Lafferty, Sun Trust, RBC Dain
Rauscher, Sanford C. Bernstein, Scott Stringfellow, S. G.
Cowen, Stephens, Punk Ziegel, MetLife, J.J.B. Hilliard W.L.
Lyons, Ladenburg Thalmann, Miller Tabak, Harris Nesbitt,
Janney Montgomery Scott, Jesup Lamont, Citigroup, Daiwa,
Advest, BNY Brokerage, Barclays, C.E. Unterberg
Towbin, Crowell Weedon, and D.A. Davidson.
Why did the SEC think routing of orders were important
enough to warrant a disclosure of the routing practices?
The brokers with the public orders are in a position to
make (price) securities. They are not known as
market (price) makers for nothing. Hope the report
will help those investors/traders that use Level 11.
NEW YORK STOCK EXCHANGE
Specialist 57.337%
Knight 12.186
Madoff 6.958
Others 6.610
Auto Desk 2.985
ARCH/EX 2.850
Chicago Stock Ex. 2.595
BSX 2.057
INET 1.661
Pershing .999
Other Exchanges .694
NYFIX Millenium .539
Bear Stearns .506
Helfant .396
AMERICAN STOCK EXCHANGE
Specialist 52.050
Knight 18.219
Others 9.312
ARCH/EX 8.332
Auto Desk 2.131
INET 1.875
Other ECNs 1.611
Madoff 1.491
BSX 1.028
UBS Capital .075
Credit Suisse .063
NASDAQ
Other Brokers 25,452
Knight 15.064
ARCH/EX 11.272
Bear Stearns 10.007
Schwab 6.148
INET 4.690
UBS 4.634
National Financial 4.349
Auto Desk 4.173
Other ECNs 2.244
BRUT 2.042
Super Montage 1.955
Madoff 1.913
Pershing 1.858
B-Tradebook 1.224
Morgan Stanley 1.106
Wachovia .650
Citigroup .605
CIBC World .604
The market (price) makers listed above are
the major players in each of these markets.
Other Brokers in NASDAQ is large due
to the type of market it is whereby there
are a lot of market (price) makers in OTC
stocks but none are of are a major factor.
The ECNs are becoming a major factor
in the securities markets, especially when
the direct access trading is added into the
equation.