Publications

Trade Reporting and Compliance

November 2010
Practitioner's Guide for Broker-Dealers

Under the current market structure, highly automated trading centers compete for order flow in the same stocks and price competition is facilitated through the simultaneous display of competing quotations by a number of trading venues. The transformation in equity trading has come about in large part due to the continual evolution of technologies for generating, routing, displaying and executing orders, which has greatly improved the speed, capacity and sophistication of the trading functions that are available to market participants. The dramatic change in the trading markets also reflects the impact of regulatory initiatives and developments such as the adoption of the Securities and Exchange Commission's (SEC) order handling rules in 1996, the prosecution of anti-competitive behavior among market makers in Nasdaq stocks during the late 1990s and the adoption of SEC Regulation NMS in 2005.

This chapter appeared in the book Practitioner's Guide for Broker-Dealers.