It seems to me that the hybrid market has one flaw that I have noticed and it is what I feel gave the NYSE it's edge and that's the specialists providing liquidity and taking the other side of executions. The old system while lacking speed of execution definitely added to the quality of execution and true liquidity. It appears that with hybrid, the executions are fast but the nyse book and away markets are the only things getting hit or taken while the specialists aren't providing the added depth that I feel was the NYSE hallmark. The hybrid needs to be tweaked to allow more specialist involvement in my opinion. Just my 2 cents. Any one else notice this?

by steve on January 31, 2007 9:20 AM

steve,

trading of new york stocks have become an absolute joke. They try to tell you otherwise, however volatility seems to have increased 10 fold. (Just watch some of the executions on any stock, with any float, forget about some of the thin ones...) I have quit trying to figure out how its possible to have trades going off upwards of 80-90 cents apart in consecutive prints, but it happens constantly. Best part of the hybrid market: Its possible to tick down a stock 60-70 cents on 100 shares/per print. Orderly? No. Less Volatile? Not a chance.

Enjoy,

JT

by jt on February 1, 2007 12:48 PM

The fact is, the specialists are no longer providing liquidity. Add to that, the fact that I and traders like myself are no longer posting liquidity, and u get what we now have - a much less liquid market. In many stocks, an illiquid market.
Furthermore, I am beside myself with the number of times a bid or offer "backs away" from an order I send. Every day, it seems that a few times, I'm not allowed to hit the bid or offer and I suffer measurabe slippage. Just what is this garbage. Are orders somehow being flagged so that the computer has a chance to back away? What a load of garabage the NYSE has come up with. No matter the size either. Happens with a couple hundred shares, happens with a few thousand. It's not suprising to see that the stock exchange continues to lose market share, considering the lack of liquidity and the absolute disaster for a system that they've come up with to replace the old model. Good job fellas!

by jack on February 1, 2007 4:43 PM

I agree. The NYSE has only gotten much worse in terms of liquidity and execution. Its faster but at a huge cost to the trader. No one posts limit orders any longer either. The specialists have just become another trader without adding any real value. The orders are not being matched by them thats why you have price swings on small prints now. Big and small traders are all complaining about the Hybrid. Something needs to be done about this ASAP.

by tony dey on February 5, 2007 11:51 AM

If the specialists don't step up the floor and NYSE inc will be in seriouse trouble.

by steve on February 5, 2007 1:24 PM