• Jan
  • 26
  • 2007
  • 10:43 AM

Nitty-Gritty of Phase IV Summed Up Tight

By: Margarida Correia
File Under: NYSE

Here's something I thought you might find helpful---an overview of the new tools and functionality that will be introduced in Phase IV of the Hybrid Market. It was posted yesterday on nyse.com. The overview describes the two new order types and the new specialist and floor broker tools expected to go live by March 5, the very latest anticipated completion date for Phase IV.

Also worthwhile -- an NPR report by Lisa Chow on the rollout of Phase III, which aired yesterday. Here's what Doreen Mogavero, president of brokerage firm Mogavero, Lee & Co. and a 28-year veteran of the floor, had to say about the NYSE's shift to expanded electronic trading:

People can only do so much. If we want to compete and we want to grow, I need to be able to increase my capacity, and as technology has made it possible for us to do that, we take advantage of it.

That's all for now. I'll keep you posted as I learn and hear new things.

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Comments

Hi. I'm not clear on hybrid short sales order default destination. I understand that:

1. market order defaults to the floor (unless marked "NX")
2. limit orders default to NX
3. What about short sales? What is the default execution destination?

Could you please answer question #3 on short sales and confirm (or correct) #1 and #2?

Thanks in advance for your help,

Joe

by Joe Vito on January 27, 2007 5:49 PM

Joe --

1) Market orders are automatically executed. They need no longer be marked "NX."

2) Marketable limit orders are automatically executed; non-marketable limit orders are posted on the limit-order book.

3) There is no special handling for short orders; they are handled as above.

Hope that clears it up, Joe. Thanks for writing!

by Ray Pellecchia on January 30, 2007 4:55 PM

Thanks for your reply. It is very helpful. I was under the impression that there were still options to route to the floor but I had been looking at older docs I suppose.

Thanks for your help

Joe

by Joe Vito on January 31, 2007 10:12 AM

Joe -- Happy to help. And just one additional note, re your last comment, customers can still route orders to NYSE floor brokers to get the benefit of their expertise as well as their new electronic tools such as discretion, reserve and pegging.

by Ray Pellecchia on January 31, 2007 11:20 AM

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