Orders Priced for Immediate Execution
Marketable Limit Orders
Orders to buy (or sell) in which the limit price is at or above (or below) the current market.
Market Orders
An order to buy or sell a security at the current price available in the market.
Oversized Orders3
Orders of 10,000 shares (or more) or for a market value of at least $200,000.
Liquidity Providers
Liquidity providers work to improve executions relative to the National Best Bid or Offer (NBBO) by using capital to execute orders against their own account or by routing to Alternative Trading Systems (ATS), securities exchanges, or other market markers.
Securities Exchange
A securities exchange, an entity that has registered with the SEC, is a marketplace that facilitates the buying and selling of securities among market participants.
OR
Alternative Trading System
An Alternative Trading System (ATS) is an execution platform that brings together buyers and sellers of securities, similar to how orders are matched on an exchange.
Step 4: Execution
Most orders are executed instantly. Larger orders may be marked for special handling to potentially minimize market impact and obtain a better price.
Orders Not Priced for Immediate Execution
Non-Marketable Limit Orders4
Orders to buy or sell which are not immediately executable because the limit price is outside the current market or due to some other order condition (e.g., all or none).
Regulations5 require certain non-marketable orders to be posted on a securities exchange for display in the marketplace. Depending on the order type, it may be reflected on the National Best Bid or Offer.
Oversized Orders³
Orders of 10,000 shares (or greater) or for a market value of at least $200,000.
The order display requirements do not apply to oversized orders.
Seeking to maximize execution opportunities, we route non-marketable orders either to a securities exchange or to liquidity providers who will route to an exchange, where they will be displayed for potential execution against incoming orders.
Securities Exchange
A securities exchange, an entity that has registered with the SEC, is a marketplace that facilitates the buying and selling of securities among market participants.
OR
Liquidity Providers
Liquidity providers, such as broker-dealers and market markers, make their own independent determination of where to route each order for display and potential execution.
Step 4: Execution
Limit orders are filled when the market reaches the limit price depending on market conditions and an order’s priority in the market.