The Plexus BrokerEDGE Monitor Universe is a transaction database of nearly 7 million trades ($3.3 trillion in volume) compiled from data contributed by Investment Technology Group Inc. investment manager clients. The information is based on four quarters of U.S. equity trading data for the period ended Sept. 30. Brokers are separated based on their primary peer group: full service, research and execution. Ranks are based on the top 30 by dollar volume in each group. Execution cost is the price difference from order to execution; best execution ranks brokers on the difference between execution cost and the Plexus Average Execution Gain/Loss benchmark, in basis points; difficulty is based on the dollar-weighted benchmark; commissions are ranked in cents per share.
BEST EXECUTION: small trades (10,000 shares or less)
Full-service brokers
Value
added
(bps)
UBS
-5
Sanford C. Bernstein
-6
Morgan Stanley
-6
JPMorgan Securities
-6
Citigroup Global Markets
-6
Bear Stearns
-8
Credit Suisse
-8
Merrill Lynch
-8
Goldman Sachs
-8
Deutsche Bank Securities
-9
Execution-only brokers
Value
added
(bps)
Heflin & Co.
28
Archipelago
5
UNX
3
JonesTrading
2
Instinet
1
NYFIX Millenium
0
Bloomberg Tradebook
-2
Cantor Fitzgerald & Co.
-3
GSEC
-4
Capital Institutional Services
-5
Research/specialty brokers
Value
added
(bps)
Raymond James & Assoc.
3
Monness Crespi Hardt
0
Rochdale Securities
-1
SunTrust Robinson Humphrey
-1
Friedman, Billings, Ramsey
-3
Abel/Noser
-4
Janney Montgomery Scott
-4
Keefe Bruyette & Woods
-4
Robert W. Baird & Co.
-4
Jefferies & Co.
-5
BEST EXECUTION: large trades (more than 10,000 shares)
Full-service brokers
Value
added
(bps)
Morgan Stanley
0
Sanford C. Bernstein
-4
UBS
-4
Goldman Sachs
-4
Merrill Lynch
-4
Lehman Brothers
-4
Citigroup Global Markets
-5
JPMorgan Securities
-6
Banc of America Securities
-6
Credit Suisse
-7
Execution-only brokers
Value
added
(bps)
UNX
20
Fidelity Capital Markets
14
GSEC
10
State Street Brokerage Svcs.
8
Cantor Fitzgerald & Co.
7
LaBranche
5
Bloomberg Tradebook
4
Heflin & Co.
4
Bridge Trading
4
Liquidnet
2
Research/specialty brokers
Value
added
(bps)
Rochdale Securities
11
Jefferies & Co.
0
A. G. Edwards
-1
Pershing
-2
Friedman, Billings, Ramsey
-2
BMO Capital Markets
-2
Wachovia Securities
-3
Thomas Weisel Partners
-3
Lynch, Jones & Ryan
-4
Keefe Bruyette & Woods
-4
BEST BROKERS: small trades (10,000 shares or less)
Full-service
brokers
Execution-only
brokers
Research/specialty
brokers
Lowest
execution
cost
Sanford C. Bernstein
Morgan Stanley
UBS
JPMorgan Securities
Deutsche Bank Securities
Heflin & Co.
UNX
Archipelago
NYFIX Millenium
Instinet
Hilliard Lyons
Raymond James & Assoc.
Rochdale Securities
Pershing
Monness Crespi Hardt
Most
difficult
trades
Credit Suisse
Banc of America Securities
Bear Stearns
Merrill Lynch
Lehman Brothers
Fox-Pitt Kelton
Heflin & Co.
Susquehanna
Weeden & Co.
JonesTrading
Monness Crespi Hardt
Keefe Bruyette & Woods
RBC Dain Rauscher
Friedman, Billings, Ramsey
CIBC World Markets
Lowest
commissions
Sanford C. Bernstein
Morgan Stanley
Deutsche Bank Securities
Credit Suisse
Banc of America Securities
NYFIX Millenium
REDIPlus
UNX
Lava Trading
ITG
Hilliard Lyons
CIBC World Markets
Pershing
Legg Mason Wood Walker
Thomas Weisel Partners
BEST BROKERS: large trades (more than 10,000 shares)