How should orders be divided into the three classes (market, limit, other) specified by the Rule?
The three classes of orders are intended to correspond generally to the division of orders in Rule 11Ac1-5, thereby facilitating use of the monthly execution quality reports of market centers in conjunction with the quarterly order routing reports of broker-dealers. Rule 11Ac1-5 requires market centers to report on their executions of standard market orders and limit orders, but excludes a wide variety of orders for which the customer requests special handling. These exclusions include market opening and closing orders, orders submitted with stop prices, all-or-none orders, orders that must be executed on a particular tick or bid (such as non-exempt short sale orders), and “not held” orders. All of these special handling orders would fall within the “other order” category for purposes of the quarterly order routing reports required by the Rule. Marketable limit orders are appropriately classified as limit orders under the Rule.
Related Questions
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