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Level III quotes are everything included in Level I quotes and Level II quotes plus the ability to enter or change quotes, execute orders, and send out confirmations of trades. Only NASD member firms who are also market makers have Level III quotes capability. NASDAQ restricts Level III quotes access to its registered member brokerages and institutions. Level III quotes from market makers are from brokerages and banks who are registered to use Level III quotes because they maintain a bid-ask price in a given security by standing ready to transact at publicly quoted prices. Level III quotes privileges allow brokerages to meet the best execution requirement to execute customer orders at the best price currently available. The Level III quotes platform lets the user receive bid/ask quotes as the instant trades are being executed. Level III quotes are the fastest way to execute a trade in any NASDAQ stock. |
