Order splitting

Order splitting

Breaking up orders so that they can be processed as small orders for execution by SOES. Prohibited by NASD.

Order Splitting

A practice in which an investor makes several orders to buy or sell the same security, instead of making one large order. Order splitting occurs when the investor wishes to have his/her orders processed by the Small Order Execution System, which is faster than other systems, but is only supposed to be used for small orders. FINRA prohibits order splitting.