Quote and sale or trade indicators

By: Ray Pellecchia

File Under: NYSE

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Back to our regularly scheduled program. Lately, seems we've been talking about everything but the NYSE Hybrid Market, so here's a refreshing change: Chapter 29 in our much-beloved serial, the Hybrid Training Program.

Today's installment focuses on new and revised indicators for quotes and sales or trades. These indicators will shed light on quotes and executions in the Hybrid/NMS environment.

Excerpt:

In preparation for the NYSE Hybrid Market(SM), the Consolidated Tape Association ("CTA") has agreed to adapt NYSE Group's recommended indicator changes to the quote and sale or trade condition as published on the Consolidated Tape. The new and defined indicators are identified in the grid below. However, data vendors may choose to display the quote and sale or trade conditions in their own unique fashion.

Quote Indicators

In general, quote indicators were either changed or added to reflect instances when quotes are slow, meaning they are not immediately available for automatic execution and therefore can be traded through as per Reg. NMS.
A variety of market conditions can cause quotes to be slow, including trading halts, locked or crossed markets, gap quotes, and NYSE Liquidity Replenishment Points (“LRP”)SM.

While the Hybrid Market is designed to keep instances of slow quotes to a minimum, quote indicators will alert market participants that a significant pricing event may be taking place on the floor. The maximum average duration of a slow quote is expected to be no greater than 5 seconds, no matter what market condition may have precipitated it.

Sale or Trade Indicators

In general, sale or trade indicators were redefined to identify the underlying reason why certain executions took place, such as trades resulting from a sweep execution involving CAP orders and trades that have been executed on another exchange in accordance with Reg. NMS requirements.

We're continuing to lob these Training Program chapters out there when new developments merit. Would dearly love to know what you'd like to see covered.

And since I wolfed down my sandwich exceptionally quickly and have a few minutes left of my lunch half-hour, here's a little bit of HybridTalk trivia about the number 29:

• Op-29-Online is the U.S. Marine Corps' Web site for their operations in Twentyninepalms, Calif. Includes this terrific article by Cpl. Brian A. Tuthill about the Marines' assistance in fighting the Sawtooth wildfires in the region. We salute you. Excerpt:

Lehmen, the chief engineer with the Combat Center Facilities Maintenance Division, left work early July 11 to join his wife at their home near historic Pioneertown, Calif., where firefighters fought to protect structures and at one point were actually surrounded by the fire.

“I headed back Tuesday afternoon and it was very eerie out there,” he recalled. “The smoke was brown-grey, the sky was brown-grey and the sun was hidden and blood red.

• An oufit called Incredible Adventures ("Life is either an incredible adventure...or nothing at all") offers customers the ability to fly MiG-29s over Russia. MiGs as tourist attraction instead of enemy target? I guess the Cold War really is over.

• On that date (Feb. 9 ) 1964 in classic-rock history, the Beatles made their first appearance on the Ed Sullivan show, and the world is forever changed. For the better.

• I was a young man of 29 when I first started working here. Had no idea what I was getting into. Now if you can find the recent post when I mentioned my work anniversary, you can ballpark my age. My rapidly advancing age. Not-so-subtle hint: HybridTalkin' it up.