From the information presented, we cannot tell whether Montone got best execution or not. We have no other trading data for comparison purposes. The other statements are accurate. The spreads are small relative to the stock prices, suggesting a liquid market. On one of the trades (Grossman Golf), the effective spread was higher than the quoted spread, suggesting that Montone had to purchase liquidity. The effective spread for the other two trades was lower than the quoted spread, so Montone provided liquidity on those trades. To calculate the effective spread on a purchase transaction, subtract the midpoint of the quoted spread from the execution price and multiply that number by two. $8.53 – [($8.52 + $8.45)/2] = $0.045. Doubled, that’s $0.09 |
