Small Order Execution System

Small Order Execution System (SOES)
A system that was first developed in 1984 and made mandatory for NASDAQ National Market stocks in 1988 after the market crash of 1987.

Small Order Execution System (SOES)
SOES was established to resolve inefficiencies that would result in a panic type of market event where orders were coming in with enormous volume.

Small Order Execution System (SOES)
Computerized system developed by Nasdaq for immediate electronic execution of up to 1,000 shares of stock.

Small Order Execution System (SOES)
Three-tiered system of automatic execution of an order at the best price. Size is either 200, 500, or, most often, 1000 shares.

The Small Order Execution System or SOES is an automated execution system that routes orders of up to 1,000 shares directly to Nasdaq market makers.

Small Order Execution System Also known as SOES, an automated system that bypasses brokers when processing small order agency executions of Nasdaq securities.

(See limit order, Small Order Execution System) Nasdaq
The National Association of Securities Dealers Automated Quotation system. (See National Association of Securities Dealers, Inc.) Nasdaq CompositeSM Index ...

Small Order Execution System (SOES): Computerized system that automatically routes, executes, reports, and compares market and limit orders between 100 and 1,000 shares in Nasdaq securities at market makers' best displayed bid and offer prices.

Order Splitting - Order Splitting is when stockbrokers split up larger orders to qualify them for the Small Order Execution System (SOES) and, therefore, have them automatically executed.

The Small Order Execution System (SOES) is another NASDAQ feature, introduced in 1984, to ensure that in 'turbulent' market conditions small market orders are not forgotten but are automatically processed.

To answer this problem, the SOES was established (Small Order Execution System), providing a method for entering trades electronically. SOES is required by NASDAQ in order to engage in trade.

Another reform made during this period was the "Small Order Execution System", or "SOES", which required market makers to buy or sell, immediately, small orders (up to 1000 shares) at the market-makers listed bid or ask.

When brokers split up larger orders to qualify them for the Small Order Execution System (SOES) and, therefore, have them automatically executed.

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To counteract this, the Small Order Execution System (SOES) was established, which provides an electronic method for dealers to enter their trades. NASDAQ requires market makers to honor trades over SOES.

Requirements imposed by the National Association of Securities Dealers on Nasdaq market makers who must meet certain standards, including timely reporting of price and volume data, participating in the Small Order Execution System, ...

(Source: Gastineau and Kritzman, Dictionary of Financial Risk Management, Frank J. Fabozzi Associates, 1996.) SOES Small Order Execution System.

See also: Execution, Order, Market, Stock, Share