Datek Brokerage $9.95 a trade Message Board

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Non-Tech : Datek Brokerage $9.95 a trade

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To: Brandon Buttons who wrote (14305)	3/14/2000 10:11:00 PM
From: gbh	of 16892

NASD Panel Hits Datek With $100,000 Award in Investor Suit. From thestreet.com: [The investor] alleged that Datek held on to his order and eventually executed it on the trading system it owns, Island, rather than sending it out to another marketplace where it could have traded sooner. "I haven't seen any cases like that," said Morgan Bentley, an attorney in Newark, N.J., who represents investors and brokers. "However, I would suspect that they are going to happen more. When a broker accepts an order, he has a duty to execute at fairest price. If he's favoring his in-house system over handing it out, he's breaking his fiduciary duty to his client." Datek's use of the Island ECN is increasingly common across the brokerage industry; many firms own pieces of such electronic trading systems to conduct less expensive trading. It's a situation that has caught the eye of regulators.

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