Commentary

Tim Quast
Traders Magazine Online News

We're All HFTs Now

In this guest commentary, author Tim Quast looks back at the history of HFT and how the market has evolved to where many firms now fit the definition of high-frequency trader.

Traders Poll

Are you in favor of a pilot program and examination of the rebate system by the SEC?




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February 1, 2003

A Closer Look at Best Execution

By Gregory Bresiger

Among the new AIMR guidelines:

* Establishment of trade management policies and procedures that seek to maximize the value of client's portfolio within that client's investment objectives and constraints.

* Establishment of a trade management oversight committee.

* Implementation of firm wide trade management policy or policies.

* Implementation of a trade evaluation process.

* Establishment of clear firm-wide guidelines on broker selection and development of an approved brokers list.

* Firms should clearly disclose the actual and potential conflicts of interest that arise from step-outs, research obtained through soft dollars and interest in or material business relationships with market making firms.