Developments Of Note
First Reports For Listed Securities Under SEC’s Execution Quality Disclosure Rules Now Available
As required by Rule 11Ac1-5 under the Securities Exchange Act of 1934, market centers (exchanges, over the counter ("OTC") market makers and alternative trading systems) have posted on the Internet the first of their monthly electronic disclosures of execution quality on a stock-by-stock basis using uniform statistical measures. These disclosures include (a) how market orders of varying sizes are executed relative to the public quotes provided by market centers, (b) effective spreads, i.e., those actually paid by investors whose orders are routed to a particular market center, relative to quoted spreads and (c) the extent to which investors who use limit orders receive execution at prices better than the public quotes. The currently available reports cover trading in exchange-listed securities for June 2001. Market centers will begin making reports covering NASDAQ
