Tuesday, May 10, 2011

External crossing

To achieve best execution in its international investing, the fund emphasizes two aspects related to execution costs:

  1. maintaining anonymity
  2. minimizing commissions and fees.

[Question]
Which of the following trading techniques is most consistent with the claim above regarding best execution in the firm's international investing?

A. Agency trade
B. Principal trade
C. External crossing


[Answer]
C

External crossing keeps execution costs very low and anonymity is assured.

0 comments:

Post a Comment