Citigroup Global Markets provides the best trade execution on the New York Stock Exchange, according to a new report from Celent Communications. National Financial Services was next, followed by Trimark, UBS and Automated Trading Desk.
On the Nasdaq stock market, Celent found the best execution providers are Automated Trading Desk, National Financial Services, E*Trade, UBS and Morgan Stanley.
The report measured more than 240 market participants and ranked them according to execution speed, order fill rates and prices obtained. More than 3 billion trades for more than 7,000 equities were analyzed. The data covered trading from Dec. 1, 2004, through Feb. 28, 2005.
On the Nasdaq market, where ECNs control about 61% of market share, market makers executed trades quicker than ECNs for the five most liquid stocks, the Celent study found. ECNs' average execution times for these trades was 15.5 seconds for small orders, compared with 1.6 seconds for market makers for the same types of orders.