- Dec
- 30
- 2005
- 9:00 AM
Hybrid Market 101: Reserve and layered e-Quotes
- By: Ray Pellecchia
- File Under: NYSE
How exactly will the reserve and layering features of NYSE e-Quote work?
How exactly will the reserve and layering features of NYSE e-Quote work?
NYSE e-Quote helps floor brokers execute orders effectively and efficiently for their customers in the Hybrid Market. For the first time, brokers can electronically enter their customers' interest into the Display Book. Brokers also have new capabilities to serve customers -- reserve, layering and do-not-display features.
e-Quote is a key new functionality being rolled out in the current pilot program. Vol. 9 of the Hybrid Training Program tells all about it:
http://www.nyse.com/marketinfo/hybmarket/1129113557822.html
We anticipate that the trading floor's capital and judgment will continue to be important.
Now this is user-friendly: answering the key questions about new order types, at a glance.
Where does the magazine find all of its "ten sturdy stocks" for 2006? Where else?
Customers sending their orders to the Big Board will receive the best price published on any market, plus a real opportunity for price improvement. Vol. 7 of the Hybrid Training Program outlines how the NYSE will handle orders that sweep when away markets are involved. Example included, no extra charge:
http://www.nyse.com/marketinfo/hybmarket/1127299875803.html
When we're open for trading, and when you can have that extra hit of eggnog.
Giving electronic users access to liquidity beyond the best bid or offer.
A new volatility control that curbs wide price movements resulting from automatic executions and sweeps over a short period of time.
The list is hidden in plain sight, but here are a couple of links for your reference.
NYSE Auction Limit and Auction Market Orders are new order types that automate the opportunity to expose market and marketable limit orders to potential price improvement.
The trade press is picking up on Hybrid Market developments, including this humble blog.
Providing customers with the broadest array of order-execution choices means creating several new order types.
Vol. 2 of our Hybrid Training Program summarizes several key attributes of a new market model that integrates into one platform the best aspects of both the auction market and electronic trading.
Interaction between the automatic and auction markets will maintain the opportunity for price improvement.
New customer benefits included in first phase of new market model.
"We believe that we are balancing incentive for liquidity providers and liquidity takers. This proposal strikes the appropriate balance," says Bob McSweeney, the NYSE's senior VP for Competitive Position.
From the very basics to step-by-step examples of how orders will be handled in the new structure.
As our marketplace evolves, offering new choices and benefits for customers, so does the way we talk about it.
Q: Does the Hybrid Market have any order restrictions – type, time or size?
... in the arena of trading costs is the Big Board. Article says that in the U.S., the NYSE has by far the lowest trading costs.
His talk covers how the Hybrid Market will help customers, the strategy behind the Archipelago merger, and how this all fits together.