ECNs provide price improvement to 10% of Nasdaq executed share volume, and to 20% of executed share volume on Amex and NYSE. Or so claim Celent Communications in a new analysis of execution quality data reported by major executing market centres, which are required by SEC Rule 11Ac1-5 to report these data on public Web sites.
Celent is publishing the results of its analysis in a series of nine reports. The first of these reports, “Execution Quality in Equity Trading: Electronic Community Communication Networks,” compares execution certainty, speed, price, and spreads among six ECNs: Attain, Brut, Instinet, Island, Nextrade, and Tradebook. The findings contradict certain perceptions of best execution by ECNs, which are known for fast executions but somewhat inferior prices.