Auto-execution with legacy brokers

E

erlewine

Is anyone aware of a thread or site that discusses auto-execution policies of old-school/legacy brokers (that have their own internal order routing, usually to market makers/regionals in exchange for payment for order flow) i.e. etrade, brown, etc?

I know things have changed a good deal from a few years ago, but my guess is picking off dealers on stale quotes is still a viable strategy since brokers have no choice but to demand auto-ex from affiliated dealers to keep their order execution stats (TAG reports, etc...) kosher.
 
Clearing firms/broker-dealers have always been notoriously tight-lipped about such arrangements.

Most are specifically designed to contravene...
The "get best execution for customer" ** legal requirement **...
And instead fleece the lambs and pad margins at every opportunity.

I used to be a B/D and my clearing firm would lie to me as a matter of course.
I've been with IB for about a year...
And I must say that IB has never lied to me.

rm+

:cool: :cool: :cool:
 
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