eSignal - SOES Field
NASDAQ SOES (Small Order Execution System) was created in 1985 and made mandatory after the 1987 market collapse. At that time, many small investors were unable to sell stocks as prices fell because they couldn't reach dealers or market makers on overloaded phone lines. SOES provides small investors with quick access to the NASDAQ market. The purpose of the SOES system is to enable the average person to get an "honest, immediate, legitimate" execution and to bid and offer shares in between the spread to achieve price improvement. Day traders add liquidity to the markets benefiting all investors. The existence of the SOES, SelectNet, ECNs such as Island, Bloombergand Archipelago, and REDI has eliminated significant advantages enjoyed for years by the market-making community.
The Small Order Execution System (SOES) is an automatic execution system for orders of up to 1,000 shares. An important safeguard for all investors in your company's stock, SOES was designed to guarantee that all eligible orders will be automatically executed at the best possible bid or offer price available in NASDAQ at the time the order is placed, even in turbulent market conditions.
When an investor places an order to sell up to 1,000 shares that is entered into SOES, SOES will direct the order to the Market Maker currently offering the best bid price and execute the order with that Market Maker. SOES ensures that an order will be executed automatically according to the Best Displayed Price.
Participation in SOES is mandatory for all Market Makers in NASDAQ National Market securities.