Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/25382
Authors: 
Theissen, Erik
Year of Publication: 
2002
Series/Report no.: 
CFS Working Paper 2002/06
Abstract: 
Deutsche Börse AG plans to introduce a system (Xetra Best) allowing brokers and brokerdealers to internalize the orders of retail customers. Further, Xetra Best supports payment for order flow arrangements. Both internalization and payment for order flow may be detrimental to market quality. This paper discusses advantages and disadvantages of these arrangements. It draws on experiences made in the US. We derive policy implications that aim at a more stringent interpretation ofbest execution, and at higher transparency.
Subjects: 
Internalisierung
Payment for order flow
best execution
JEL: 
G10
G14
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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