Last updated: June 22, 2025
This Best-Execution & Order Handling Disclaimer (“Disclaimer”) describes our policies, procedures, and limitations regarding the routing, execution, and handling of your orders in U.S. equities and listed options. By placing any order through Abra Securities (“we,” “us,” “our”), you acknowledge that you have read, understood, and accepted the terms set forth below.
1. Scope & Objective
1.1 Purpose: We are committed to seeking the most favorable execution (“best execution”) reasonably available under the circumstances for our clients’ orders. However, best execution does not guarantee the best possible price in every instance.
1.2 Applicability: This Disclaimer applies to all order types placed on behalf of discretionary trading mandates or direct client instructions, including market, limit, stop, stop-limit, and complex multi-leg options orders.
2. Best Execution Principles
2.1 Overall Obligation: We take into account price, speed, likelihood of execution, order size, nature of the order, and any other relevant considerations to deliver best execution in a manner consistent with your trading objectives.
2.2 Client Instructions: Where you provide specific instructions as to price, venue, or timing, we will execute in accordance with those instructions. Such directed orders may foreclose our ability to seek alternative venues or prices.
2.3 Aggregation & Allocation: For simultaneous client orders in the same security, we may aggregate to achieve scale efficiencies. Executed trades are allocated in accordance with pre-established allocation policies that are fair and equitable, and consistent with your mandate.
3. Order Routing & Execution Venues
3.1 Routing Methods: Orders may be routed to one or more of the following:
- National securities exchanges (e.g., NYSE, NASDAQ)
- Alternative trading systems (dark pools)
- Block-order crossing networks
- Market makers and liquidity providers
3.2 Venue Selection Criteria: Venue selection is based on overall execution quality, depth of liquidity, transaction costs (including fees, rebates, and market impact), reliability, and speed.
3.3 Use of Dark Pools & Block Networks: For large-block or institutional orders, we may utilize dark pools or block networks to minimize market impact. These venues may offer a lower market footprint but can carry less transparency and potential post-trade price movements.
4. Order Types & Handling
4.1 Market Orders: Intended for immediate execution at prevailing market prices. Subject to price volatility and may incur slippage in fast-moving markets.
4.2 Limit Orders: Executed only at your specified price or better. There is no guarantee of execution if the market does not reach your limit price.
4.3 Stop & Stop-Limit Orders: Triggered once the market reaches a specified stop price. Stop orders become market orders upon trigger; stop-limit orders become limit orders, which may not execute if the limit price is not available.
4.4 Complex Options Strategies: Multi-leg orders (spreads, straddles, butterflies) are handled according to combination order rules of the venue, which may require simultaneous execution of multiple legs and can lead to partial fills.
5. Execution Quality Factors
5.1 Price Improvement: Where available, we seek opportunities for price improvement. However, price improvement cannot be guaranteed, especially in illiquid or highly volatile markets.
5.2 Speed & Likelihood of Execution: Faster execution may sometimes be prioritized over marginal price improvement, especially for market or urgent orders.
5.3 Order Size & Market Impact: Large orders relative to market depth can move prices. We use order-slicing algorithms and venue diversification to mitigate impact, but full elimination of market impact is not possible.
5.4 Liquidity Considerations: In times of extreme volatility or low liquidity, execution venues may suspend trading or widen spreads, affecting our ability to fill orders at anticipated levels.
6. Partial Fills & Cancellations
6.1 Partial Executions: Orders may be partially filled due to insufficient liquidity. Remaining unfilled portions may be canceled or left working according to your standing instructions.
6.2 Order Cancellation: You may request cancellation of unfilled orders, subject to venue and market rules. Cancellations are not guaranteed if an order is already in the process of execution.
7. Confirmation & Reporting
7.1 Trade Confirmations: We will provide confirmations containing details of executed trades—price, time, venue, and quantity—via electronic delivery or your designated communication channel.
7.2 Execution Reports: Periodic summaries (daily or monthly) are available upon request, detailing metrics such as average execution price vs. national best bid/offer, fill rates, and routing statistics.
8. Conflicts of Interest
8.1 Principal Trading: In certain situations, we may act as principal and internalize your order against our own inventory. Such executions are conducted subject to the same best-execution standards but may present a potential conflict of interest.
8.2 Payment for Order Flow: We do not engage in payment-for-order-flow arrangements.
8.3 Disclosure: Any material conflict that could affect execution quality will be disclosed to you in advance or in periodic compliance reports.
9. Systemic & Operational Risk
9.1 Technology Outages: Service interruptions, whether due to internal system failures, third-party vendor outages, or market-wide disruptions, can delay or prevent order entry, modification, or cancellation.
9.2 Data Feed Errors: Execution decisions based on inaccurate or delayed market data may lead to suboptimal outcomes. We continuously monitor data integrity but cannot guarantee absolute accuracy.
10. Amendments & Consent
10.1 Policy Updates: We may update this Disclaimer periodically. The “Last updated” date reflects the effective version. Continued use of our services constitutes acceptance of any changes.
10.2 Client Acknowledgment: By placing any order with Abra Securities, you confirm your acceptance of this Disclaimer and your understanding of the limitations and obligations it contains.
For questions regarding this Best-Execution & Order Handling Disclaimer or to request additional reporting, please contact your Abra Securities relationship manager or email info@abrasecurities.com.
