Search past winners/finalists


  • MESA logo

Direct Edge

Gold Stevie Award Winner 2012, Click to Enter The 2013 American Business Awards

Company: Direct Edge
Company Description: The fourth largest stock exchange in the world.
Nomination Category: Company / Organization Categories
Nomination Sub Category: Company of the Year - Financial Services

Nomination Title: Direct Edge: A Stock Exchange for the People

Tell the story about what this nominated organization achieved since January 1 2011 (up to 500 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms. Be sure to mention obstacles overcome, innovations or discoveries made, and outcomes:

When you consider a list of US stock exchanges, the names that most quickly spring to mind are the New York Stock Exchange (Founded 1817) and NASDAQ (Founded 1971). Both have storied histories and were the focal point of many of the largest corporate deals of the bull markets in the 80s and 90s.

The Jersey City–based stock exchange Direct Edge is not as quickly thought of among these giants, despite the fact that it represents the third or fourth largest US exchange on any given day. Perhaps, among other reasons, it is because Direct Edge achieved exchange status in July 2010 and credits some of its rise on innovative pricing appealing to the desirable, but lower profile, retail investor flow. As such, Direct Edge has risen as an exchange buoyed by the flow of tens of millions of individual investors.

AN EXCHANGE FOR THE PEOPLE

Discount brokerage firms are the most popular conduit for individual investor flow to the exchanges. Those brokerages have a customer service obligation that makes their choice of a routing exchange especially important and they must report those relationships to the SEC via a 606 filing. Direct Edge is often the top, or only, exchange listed as a routing venue.

- TD Ameritrade: #1/only exchange for NYSE stocks, #1/only exchange for NASDAQ stocks, #1/only exchange for NYSE Amex/regional exchange stocks. Source: http://tinyurl.com/6wa7hfp

- Scottrade: #1/only exchange for NYSE stocks, #1/only exchange for NASDAQ stocks, #1/only exchange for NYSE Amex/regional exchange stocks. Source: http://tinyurl.com/7j7tbgn

- E-Trade: #1/only exchange for NASDAQ stocks, #1/only exchange for NYSE Amex or regional exchange stocks. Source: http://tinyurl.com/2j3nxa

- Fidelity: #2 exchange for NYSE stocks, #2 exchange for NASDAQ stocks, #2 exchange for NYSE Amex or regional exchange stocks. Source: http://tinyurl.com/7dsytao

EXCEPTIONAL CUSTOMER SERVICE

Just like a department store can run out of inventory on an item, an exchange can run out of supply of a certain stock. When this happens, exchanges often devise “routing” strategies to help their investors get their order filled elsewhere. Direct Edge has the largest selection of routing strategies with 36 (Source: http://tinyurl.com/cb9usd9 ); Nasdaq has 31 (Source: http://tinyurl.com/cunrfod ); BATS has 21 (Source: http://tinyurl.com/cqg9q9e ); and NYSE has 1 (source: http://tinyurl.com/bmfmgk6 ).

Direct Edge CEO Bill O'Brien has been clear that his firm's focus is its clients. He was the only exchange CEO named one of the "Top 10 Innovators of the Decade" by Wall Street & Technology magazine, in part because of his client-focused philosophy. "I want to use technology to provide a completely better offering for customers," said Bill in the article. Bill was also ranked 19th on the Institutional Investor 2011 Tech 50 list in recognition of innovations developed to help better serve customers. It is a core operating principle of Direct Edge and perhaps the reason it is popular with individual investors.

Upload a collection of supporting files and web addresses to our server to provide more background information to the judges. You may upload any number of attachments and URLs through the "Add Attachments, Videos, or Links to This Entry" link above. 

 

http://www.directedge.com/Portals/0/images/PDFs/120300%20-%20O%27Brien%20Cover%20Story%20-%20Waters.pdf

http://www.globenewswire.com/newsroom/news.html?d=245055

http://www.institutionalinvestor.com/Article.aspx?ArticleID=2862505

http://www.wallstreetandtech.com/top-innovators/2011/William-OBrien

Provide a brief (up to 100 words) biography about the leader of this nominated organization:

William O'Brien joined Direct Edge as Chief Executive Officer in July 2007 from his position as Senior Vice President at NASDAQ. Prior to that, he served as Chief Operating Officer at electronic trading platform Brut until it was acquired by NASDAQ. O'Brien also served as an attorney in the Legal Department of Goldman Sachs from 1998 to 2000 and at Orrick LLP from 1995 to 1998. He has a B.A. from the University of Notre Dame and a J.D. from the University of Pennsylvania School of Law.