Trade Execution More Transparent

August 1, 2001 ( - Order execution has become a little more transparent thanks to the implementation of the Securities and Exchange Commission's (SEC) "new" order execution quality disclosure rule.

The SEC?s Rule11AC1-5, unanimously approved last November, requires that market centers make their execution quality files available for downloading at a freely accessible Internet site (See SEC Orders More Trade Disclosure ). The information contained in the files shows how quickly, and at what price, buy and sell order for shares are executed.

The first publicly available monthly reports on order execution quality for listed securities have now been posted, allowing investors to compare order execution between brokers more accurately.

The reports cover the trading of listed securities for the month of June 2001.

Those covering the trading of Nasdaq securities will be made publicly available by market centers next month.

Excluded from the rule are:

  • stocks listed on the Nasdaq Small Cap Stock Market
  • stocks traded after hours
  • stop orders
  • orders filled at the market’s open and close
  • orders where the customer requests special handling

A list of the Web sites of all market centers that maintain Internet sites with downloadable files or with hyperlinks to the appropriate download sites will be made available at

The SEC’s explanation of the rules is at .