Summer reading: automated s-Quotes

By: Ray Pellecchia

File Under: NYSE, NYSE

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The latest chapter in the Hybrid Training Program booklet (fun summer reading for you beach-goers!) has just hit the newsstands (OK, our Web site), and it covers the ongoing rollout of automated s-Quotes. An excerpt:

The NYSE Hybrid Market(SM) is advancing another step toward full implementation with the introduction of automated s-Quotes(SM). The introduction enables the NYSE and specialists to gain experience with a new functionality that will help the specialists improve the speed and quality of service to customers, and help them manage an ever-increasing volume of orders, quotes and trade reports.

About automated s-Quotes:

• As part of Phase II of the implementation of the Hybrid Market, specialist firms are being enabled to send algorithmic quoting messages (NYSE s-QuotesSM) via the NYSE Specialist API(SM), an electronic conduit that connects specialists’ systems employing algorithms to NYSE systems.

• Previously, specialists had to enter s-Quotes manually.

• The introduction began with one specialist firm s-Quoting in one stock.

Next steps:

• Additional specialist firms and stocks will gradually be added to the automated s-Quote rollout.

• Additional functionality will be gradually introduced, allowing algorithmic messages to be sent initiating the following actions:

o Add liquidity by buying and selling from established bids and offers;

o Provide price-improvement opportunities;

o Provide the best price nationally to NYSE customers; and

o Provide single-price executions.

Ahhh, electronic conduits and algorithmic messages, the stuff summer best sellers are made of. Enjoy. And don't forget the sun block.