Order Routing Policies
A.G. Edwards is committed to handling and routing client orders in an effort to obtain the best execution given the size and type of its client orders. To assure that the firm reasonably meets this responsibility, the firm periodically monitors its client order flow and the overall quality of client order executions.
A.G. Edwards routes client orders for execution to itself as a market maker and various market centers through electronic and manual communications channels. When doing so, the firm considers the size and type of order in relation to a combination of the following factors when determining where client orders are routed for execution:
• Anticipated execution price, based on a market center's structure and parameters for execution at the national best bid or offer (NBBO), and the opportunity for price improvement.
• Speed of order execution reports.
• Efficiency, reliability and support services provided.
• Peak capacity of order handling and execution systems as well as system backup and recovery capabilities.
• Ability of a market center to act as backup for other market centers.
• Potential for A.G. Edwards traders to add value to the order routing and execution process, particularly with respect to larger or unusual types of orders. In these situations, traders attempt to meet client execution expectations by employing automated and manual execution systems with a view to balancing price, speed and minimizing market impact.
A.G. Edwards does receive payment from some market centers for directing market and marketable limit orders to them for execution. The nature of these payments may include cash, research, voice and data communication lines, or combinations thereof. In addition, where A.G. Edwards acts as a market maker, it may earn a trading profit when it executes client orders. In order to minimize conflicts of interest, A.G. Edwards does not directly share any of these payments or profits with its traders or Financial Advisors.
A.G. Edwards' commitment to obtain best execution for clients remains its priority.
Disclosure of Order Routing Information
Quarterly reports disclosing our order routing information can be viewed via the Thomson Transaction Analytics (TTA) Web site at http://www.tta.thomson.com/reports/1-6/aged/.
Should you want a written copy of these reports or wish to know the identity of the market center that your orders were routed to please call toll-free (877) 835-7877.