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No rule exists for best ex and trade throughs are still common for non
electronic orders. Some of the exchanges guarantee best ex ....... and will
correct trade throughs. You should also know that all option orders .. as
of 07/01 .... now get a 40 cent rebate back to the brokerage firm. Where
you are most likely to get a trade through probably occurred because of a
fast market ... and order touching the book .. or before everyone paid for
order flow. Non conforming Institutional orders .... think of these as big
size or orders with unique conditions .. can also commonly result in trade
throughs.
Ronald McEwan wrote:
> Somebody asked me this question and I was not sure if the regulations
> have changed. My answer was that the broker is not obligated (yet). I
> think the regulations are going to change to make him obligated, Does
> anybody know about this?
>
> Thanks
> Ron McEwan
>
> " Is a broker obligated to send an option buy order to the exchange with
> the best offer price and liquidity (in the case of a multiply listed
> option)?"
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