Links for Feb. 20, 2007

By: Ray Pellecchia

File Under: NYSE

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The J. Geils Band

Emulating a practice I've seen on a number of other blogs, I'm going to try to do some brief posts linking to noteworthy articles, blog posts or other information. Again, my including these implies no endorsement or guarantee of accuracy, but instead simply conveys my thought that you might find them of interest.

Traders Face Hazy Future in Digital NYSE (Associated Press) Excerpt:

Michael Rutigliano used to feel like Mickey Mantle each time he stepped on the New York Stock Exchange floor. The longtime NYSE broker said it "felt like walking on to the field of the Yankee Stadium of the business world, complete with lights, referees, uniforms, hand signals, and scoreboards. There's a palpable energy, a sense you entered the premier business arena in the world."

That arena is in the midst of radical change. The NYSE's iconic trading floor, the emblem of capitalism at work, is hurtling toward an uncharted future as the exchange embraces an electronic age.

"Hybrid" NYSE...a sign of the future? (IT for Financial Services @ BC blog) Excerpt:

I foresee the future bringing forward the realization that technology is not yet up to speed in regards to handling very thinly traded securities and if such securities are not closely monitored by specialists, their volatility will be far too great. This is where the need for specialists is most evident and is an issue that cannot be ignored. Additionally, the prestige associated with the NYSE is something that will not depart quickly.

Is human intervention on the trading floor still necessary? (IT for Financial Services @ BC blog) Excerpt:

Like any other business or industry, the NYSE has added technology in order to stay competitive, thus needing fewer people on the floor. However, whether through a program or a computer, pricing input is ultimately decided by an individual. The day to day hands on trading by a specialist is diminishing and in some ways has been redistributed over a broader range with the new hybrid platform but the specialist has not lost its importance, especially in times of crisis.

A person is always responsible for the allocation of capital, even as exchanges evolve into more automated execution platforms. The shape of the trading floor will go through a metamorphosis in the years to come, however, there is always going to be a need for decision making, not all stocks are liquid and they will continue to require some form of capital commitment.

And on the trivia front: Born On This Day: J. Geils (60) and Walter Becker of Steely Dan (56).

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