Execution Quality in the US Equities Markets
| Boston, MA, USA December 21, 2005
In an extensive study, Celent re-examines the quality of trade execution in the NYSE and Nasdaq National Market.
In an update to a study first conducted in May 2005, Celent revisits the execution quality provided by market makers, ECNs, specialists and other venues in the US equities markets. The leading execution venues for NYSE issues and for the Nasdaq National Market were ranked according to their execution based on numerous criteria. The top three overall execution venues for each market are shown below.
According to Octavio Marenzi, author of the study, "we refined our approach to measuring execution quality, in particular how price improvement is analyzed. Many participants in the markets rely on overly simplistic approaches to measuring execution quality, which can lead to specious conclusions". The report found very large differences between market centers, even for the same types of orders and same equities. The survey considered market centers' speed, as well as frequency and size of price improvement. The following market centers were included in the final rankings (in alphabetical order):
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].
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Boston, MA, USA December 21, 2005
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