The postman always e-mails twice

By: Ray Pellecchia

File Under: NYSE, NYSE

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• Email Entry

Two reader questions in response to this post, "When does an order not auto-ex?":

why does an order not auto execute against a 100 share best bid or offer? -- anonymous

My anonymous friend -- One-hundred-share quotes are generally a sign of a locked or crossed market or some other anomaly. Currently, we turn off auto-ex in such situations and post a 100-share bid or offer to call the market's attention to it, and give the auction an opportunity to address it. In Hybrid Market Phase III (this fall), we will implement auto-routing to the best price at the top of book in any market, as well as sweeping, and there will no longer be a need to suspend auto-ex in these instances.

Ray, will the Hybrid be fully rolled out by the summer time? Also, once fully rolled out will the NYSE make adjustments in the system if need be? Thanks. Tony Dey

Tony -- At this point, we anticipate virtually all of the significant functionality will be delivered between now and the fall. After that there will be some additional features introduced to make us fully Reg.-NMS compliant. And we've already made some significant changes along the way in response to customer input and will continue to do so, both during and after the implementation. Will post something on that topic later.

As always, I am indebted to my Hybrid-Building Colleagues for helping with these answers. BTW, another HBC e-mailed me after the original post to point out another exception: orders that are sized greater than the bid or offer will not auto-ex beyond the bid or offer. Again, that functionality will be introduced in Phase III.