| 释义 |
Small Order Execution System
Small Order Execution System (SOES)Three-tiered system of automatic execution of an order at the best price. Size is either 200, 500, or, most often, 1000 shares.Small Order Execution SystemA computerized order-entry system on NASDAQ that bypasses brokers and automatically executes orders at the best available price. The SOES is available for buy and sell orders for 200, 500, and 1,000 shares. NASDAQ market makers are required to use SOES where appropriate. It was established in 1987 following the stock market crash of that year.Small Order Execution System (SOES) A computerized linkup of Nasdaq market makers that allows orders of 1,000 shares or less to bypass brokers and receive automatic execution at the best available price. SOES was implemented in late 1987 in response to the 1987 stock market crash. Nasdaq market makers in the National Market System are required to participate in the SOES. Compare automated stock trading. See also SOES bandit.Case Study In January 2002 the Securities and Exchange Commission charged iCapital Markets LLC, formerly Datek Securities Corporation, with securities fraud and violations of the SEC's broker-dealer reporting provisions. According to the charge, Datek Securities had for at least five years executed proprietary trades through the Nasdaq Stock Market's Small Order Execution System (SOES), which Nasdaq designed for small public customers. Until 2001 broker-dealers were prohibited from using SOES to trade for their own accounts. SOES served as the only Nasdaq trading system offering automatic execution at the best available price. The SEC charged that Datek fraudulently utilized SOES to execute millions of trades using nominee accounts to hide its proprietary trading. From 1995 through March 1998 the firm's trades constituted over 30% of all SOES trades. As punishment for misusing the Small Order Execution System, the SEC censured iCapital and ordered the firm to pay a $6.3 million penalty. iCapital consented to the order without admitting or denying the findings.AcronymsSeeSOES |