• Mar
  • 26
  • 2007
  • 9:37 AM

Q&A: The difference between Do Not Ship orders and Reg. NMS IOC orders

By: Ray Pellecchia
File Under: NYSE, NYSE

A reader writes in response to NYSE to Introduce Do Not Ship Orders:

How do DNS orders differ from Reg NMS IOC orders?
-- Al

Al --

There are three main differences between Reg. NMS Immediate Or Cancel orders and Do Not Ship orders:

1) NMS IOC orders continue to execute up to the point when you would need to ship, and the remaining balance is automatically cancelled; DNS orders will be placed on the book as a limit order and automically cancelled when another market publishes a better price.

2) NMS IOCs are not included in the quote; DNS orders will be able to be included.

3) Reg. NMS IOCs are automatically cancelled in a trading halt; DNS will be able to participate in a re-opening trade.

Here's a neat one-page summary of Reg. NMS IOCs, NYSE IOCs, Intermarket Sweep Orders and DNS orders. As a reminder, DNS orders are pending the SEC's review, and we'll let you know when they are approved and implemented.

Thanks for writing, Al! And thanks to my Hybrid-Building Colleagues who put together the summary.

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