Q&A: Closing trades, and GTX orders

By: Ray Pellecchia

File Under: NYSE, NYSE

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In two separate e-mails that I'll combine here, a reader on the sell side sends a couple of sets of questions:

1) I am curious about the differences in how the NYSE will close the market versus how it is closed by NASDAQ. In the NYSE Hybrid market, what are the parameters for printing an execution after 4:00PM? Does electronic trading stop right at 4:00 or when the specialist prints the last trade? Is that last print by the specialist a cross (that would qualify for a trade-through exception)? Thanks.

2) Will the NYSE still accept GTX orders? I heard that the NYSE will continue to accept GTX orders but will reject any odd lot GTX order. Is that correct?

-- Joe Schifano

Joe: On the first, automatic execution continues right through the close at 4 p.m., and no later. The closing print by the specialist is a Reg. NMS-exempt trade.

On the second, NYSE currently accepts GTX orders and doesn't accept odd-lot GTX orders, and both practices will continue through the implementation of the Hybrid Market.

For those who are not familiar with GTX orders: GTX is a version of the GTC (Good 'Til Cancelled) order that enables the order to participate in not only the regular trading session but also Crossing Session I, an after-the-close crossing session for matching orders in individual issues.

You might also be aware that NYSE Group recently purchased MatchPoint Trading, Inc.; here's an excerpt from that news release:

Combining cutting edge trading technologies with veteran crossing industry expertise to develop and establish highly attractive crossing opportunities for institutions and brokers, MatchPoint’s expansive and innovative trading technology will enhance the suite of crossing services provided by the NYSE in the first quarter of 2007.

So stay tuned for news on the crossing-services front. Hope that answers your questions, Joe. Thanks for writing!

On the lighter side for your Tuesday morning, came across the following Earth-shattering news in the Police Blotter column in my local paper, The Cornwall Local:

On December 4, a person came to the police station to be fingerprinted for a job at a local day school.

Slow news day, apparently.

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