- Nov
- 24
- 2006
- 12:00 PM
Q&A: ISO orders
- By: Ray Pellecchia
- File Under: NYSE, NYSE
A reader on the sell side asks:
Will the NYSE offer the capability to instruct the NYSE to route ISO (limit/Immediate or Cancel) orders through to other market centers designated on the ISO [Intermarket Sweep Order]?
-- John Schwall
John -- I checked around, and have not heard of any plans to do so at this point. If that's a feature that you or other customers are interested in, of course we will keep an ear open for that input. Thanks for writing, John!
Hope you enjoyed your Thanksgiving, folks. Ours was great -- fireplace going, family around, good time. Today is Family Day here, sponsored by The Hershey Co. (HSY) . Place is crawling with little ones making a joyful racket. Reminder, 1:00 p.m. close today. As if you need a reminder of an early close!
Tags: New York Stock Exchange, Hybrid Market, NYSE, NYSE Group, NYX,
trading, stock market, The Hershey Co.
Comments
It seems recently that the following is occuring and I wonder if you can comment. Firstly, orders sent to the NYSE for Direct+ execution are being directed via routing firms to the NYSE (example INET or Merrill Lynch) in a matter of milliseconds but execution once the NYSE receives the order is taking at times up to 8 seconds. Secondly, orders routed to NYSE are being directed to other market centres (I believe it is referred to ITS routing) but many times, a better fill is available on the NYSE within a second of being routed to another gateway resulting in worse execution.
Thanks,
Andrew
by Andrew on November 27, 2006 3:11 PM
John -- I checked around, and have not heard of any plans to do so at this point. If that's a feature that you or other customers are interested in, of course we will keep an ear open for that input. Thanks for writing, John!
by Ray Pellecchia on November 27, 2006 3:26 PM
Andrew -- Sorry it's taken me a long time to get back to you on this.
A couple of questions and possibilities:
On the first part of your question, are the orders for Phase III stocks? If so, execution would be non-automated only if our market is "slow" for some reason, or we've routed to a non-automated market. When Reg. NMS is in place, we will route only to automatically accessible markets.
If the orders are NOT for Phase III stocks, are the orders eligible for automatic execution (limit orders of 1,099 shares or fewer)? If the orders are ineligible for auto ex, they will be executed manually.
On the second part of your question: in an automatic-execution situation, if there's a better price in another market at the time your order arrives, we're obliged to route the order. If we route your order and it gets executed, and a better-priced order then comes into NYSE (or another market), sorry, but we can't retrieve your order after sending it. Unfortunately, you're going to get the other market's price, no matter if a better order comes into NYSE or any other market afterward.
That might not be what you were hoping to hear, but I hope it's of some help in explaining what might be happening. Thanks for writing, Andrew!
by Ray Pellecchia on December 4, 2006 3:20 PM
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