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A trader who uses the Small Order Execution System (SOES) on NASDAQ to manipulate prices. The SOES bandit conducts a small transaction on a security in order to affect the price, and then executes a larger transaction to take advantage of the price inefficiency. This is a form of insider trading, as the broker executing the order knows something about the market's probable movement that other market participants do not know. An SOES bandit is also simply called a bandit.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A trader who exploits Nasdaq's Small Order Execution System by taking advantage of market inefficiencies. The bandit typically first enters a relatively small order to manipulate a security's price and then quickly enters a second, larger order to take advantage of the new price.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.