Securities Market Operations: The Effects of SOES on the Nasdaq Market

摘要

This report responds to your request that we study the Small Order ExecutionSystem (SOES) and its effects on the Nasdaq Stock Market. SOES is a securities trading system that provides immediate automated executions of trades in the Nasdaq Market. Our objectives were to determine (1) the extent to which SOES is being used for its intended purpose, (2) the effects of SOES on the marketplace, (3) the results of attempts to limit trading on SOES or replace SOES, and (4) the effects of recent market developments and proposals affecting SOES.