Q&A: IOCs, before and after Hybrid

By: Ray Pellecchia

File Under: NYSE, NYSE

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A reader on the sell side writes in response to Q&A: What's coming in Phase IV? :

Were IOC's always handled manually or is this a recent development?
-- Joe Schifano

Joe -- Prior to Phase III, Immediate-or-Cancel orders printed to paper, and were not handled systemically. Starting in Phase III we began to process IOCs systemically, but only for those securities in Phase III. So if you send one on a stock that hasn't been activated for Phase III, it would still print and be handled manually.

In Phase III we offer the IOC that either executes or cancels, or if there is a better market away, routes and then cancels.

In Phase IV we will offer another type of IOC in addition to the above. The Phase IV IOC, if properly marked, either executes or cancels on NYSE and never routes. If there is a better market away, we cancel the order.

Hope that answers your question, Joe. Thanks for writing! And thanks to a Hybrid-Building Colleague for this answer.

Slept through my usual 5:22 train and caught the 5:52, which of course came 10 minutes late, so I'm all out of sorts this morning. Don't have my usual trainmates around me, who are used to my (albeit quiet) trainblogging. I'm in a two-seater and a guy who just joined me is sighing and harumphing at every keystroke I make. Hey, I'm quieter than the rumble of the train itself, and certainly quieter than the guy down the car on his cellphone who has already called work twice to tell them he's on the train and will be 10 minutes late.

A bit of historical trivia to start your Tuesday, folks:

Today in NYSE History
21 Nov 1983 The stocks of the seven "Baby Bell" companies - spun-off in the AT&T divestiture - began trading, adding 1.5 billion shares to the list in a single day.

Now my seatmate has fallen asleep and is exacting his revenge. He's snoring. The guy down the car is calling work again. So I type a little louder. The breakdown of civil society continues.

Tags: New York Stock Exchange, Hybrid Market, NYSE, NYSE Hybrid Market, NYSE Group, NYX,
trading, stock market, AT&T