CHICAGO - Best execution of a trade is increasingly elusive, as options for purchasing securities expand. This was the consensus of executives who addressed the Investment Company Institute's tax and accounting conference here early last week.
The shift to decimalization of price from 1/8's, will mean more competition for orders, as well as heavier volume, executives said. When the stock markets moved from 1/4's to 1/8's pricing, trading volume increased three-fold, they said. A move from prices expressed in 1/8th's to two decimal points will not necessarily mean six times the volume, but it will undoubtedly mean more, they said.