What happens when a client gives an order to a broker

BestEx Asia Ltd

BestEx Asia Ltd

What happens when a client gives an order to a broker? Every time a client gives an order to a broker, the broker has a choice of venues on which to execute the trade. The venues include their own dark pool, Chi-X, ASX TradeMatch and ASX CentrePoint. The client wants to get the most liquidity at the best price without interacting with predatory counter-parties. But the broker may have different considerations such as cutting costs or supporting venues which they own. There are 3 reasons why brokers route client orders to their dark pools: (1) avoid exchange fees, (2) artificially boost market share and (3) make money from their own HFT operations. If none of these reasons include acting in the best interests of clients, how does it happen? We revisit this issue in our paper on the Barclays dark pool scandal and discuss what clients can do. (VIEW LINK) (VIEW LINK)


MORE ON



Contributor
BestEx Asia Ltd

BestEx is an innovative, broker neutral, buy-side dealing desk that enables investment managers to achieve best execution in multi-market environments.\r\n\r\nWe use technology to source liquidity and execute orders with the best possible outcomes...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.