Commentary

David Weisberger
Traders Magazine Online News

Stop the BS & Promote Real Transparency!

In this shared blog, David Weisberger says a recent WSJ article is wrong and that traders do need to purchase faster and more comprehensive market data to avoid being fined for violating "Best Execution" obligations.

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July 31, 2001

A Better Buyside Deal?

By Sanford Wexler

The BRUT ECN thinks it can help the buyside solve a persistent conflict.

The ECN's formula is to gives traders the ability to send orders to BRUT, while "repatriating" most of the commission dollars to broker dealers, which they can use for services such as research and capital.

Two For One

BRUT is embarked on its goal with a new front-end, The BRUT Workstation, for institutions and other professionals.

"It's significantly different than any other player because of our structure and liquidity," said BRUT chief executive, Richard Schenkman.

BRUT, which handles about four percent of Nasdaq share volume, will pick up a small proportion of each commission for the trade executions.

Schenkman said institutions face a conflict. They must choose between sending their trade anonymously to an ECN or to a broker dealer.

"We are giving the institutions the ability to get the best of both worlds: get the execution services through BRUT and then redistribute the commissions back to the broker of their choice to maintain and develop their relationships."

The workstation which uses technology developed by online TheBEAST, will soon allow institutions to select the destination for their commission dollars online as well as monitor their individual commission patterns.