Best Execution, Trading Capacity, and Quotations

What this video covers

• Why best execution is a reasonable diligence standard, not a price guarantee, and why a worse execution price is not automatically a violation
• How to distinguish agent capacity (messenger for the customer) from principal capacity (firm trading from its own account)
• The two publication standards: what a member must believe for a transaction report versus what reasonable cause requires for a published quotation
• What legally counts as a quotation, including any bid, offer, or formula designed to induce a bid or offer, such as "bid wanted"
• Why real-time priced quotations for an over-the-counter (OTC) equity security must match across all real-time mediums, and the narrow scope of the customer-limit-order exception
• The firmness rule for stated-price offers, and the single size-only exception for in-progress transactions
• How ordinary inter-dealer quotation changes differ from a failure to honor terms stated at the time an offer was made