Comparing volumes, speed, and prices for the most active issues, a majority of the electronic order books execute close to the national best bid or offer (NBBO). Additionally, the standard deviation between the major electronic order books (EOBs) is a mere 4%. In contrast, market makers tend to have a larger disparity in price quality, with a standard deviation of 15.8%. In terms of speed, the standard deviation calculated for the major EOBs, excluding potential outlier LavaFlow, is extremely small at 0.06. Among the major market makers, it is almost 10 times larger.
As in Celent's NYSE price rankings, BIDS Trading and Liquidnet take the top two positions, while Lehman Brothers' (LATS) platform and BATS Trading are the fastest overall market centers. Lehman Brothers (LATS) may have maintained its excellent speed performance, but BATS Trading has leapfrogged an impressive 24 places since the last Celent study.
ArcaEx achieved the best prices, whereas BATS Trading regained its top speed ranking among major electronic order books. In the market maker category, ATD achieved the best prices for client orders for Nasdaq as well as NYSE-listed issues while UBS executed incoming orders at the fastest rate.