- Dec
- 29
- 2006
- 3:12 PM
Q&A: Is anyone protecting best price?
- By: Ray Pellecchia
- File Under: NYSE, NYSE
A reader wrties in response to Q&A: Still seeing trade throughs :
Everything I have read and heard told me NYSE is already routing to top of books to protect best price. based on this post it seems that this is not happing with SDOT orders until Phase III. Basically, no market center is protecting best price in Hybrid stocks at this point including NYSE correct?
-- Jason
Jason --
Let me try to clarify: In Phase III Hybrid Market issues only, NYSE is indeed auto-routing to better prices at top of book in other markets. Other markets might not be doing the same.
In stocks that haven't been activated in Phase III yet, the old trade-through rule still applies. That rule was not the most effective at protecting best price, which is in part why the SEC developed Reg. NMS.
I hope that clears it up, Jason. Thanks for writing!
Tags: New York Stock Exchange, Hybrid Market, NYSE, NYSE Group, NYX, trading, stock market, Reg. NMS,
SEC
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