Ray, this blog was a great idea and has helped us customers express some of our fustrations with the hybrid. Do you know when the new version of the Hybrid will be rolled out? and will the specialists have a more active role in it? Thanks for everything.

by tony dey on April 12, 2007 7:20 PM

Nothing wrong with using the Search box, oded - we're all online all the time anyway, right? Except that HybridTalk searches for "NYSE", "NMS", "route", "ITS", "Phase" and "LRP" all returned zero matches, Ray. It may be time to hire a chimney sweep or something.

by SunBum on April 12, 2007 10:45 PM

Ray,

Just wanted to let you know that I linked your site to a post on my blog today.

The post dealt specifically with how the Hybrid system added unnecessary volatilty to a stock due to "airpockets" created by a lack of liquidity in the Hybrid system.

If there were more price improvements, like Tony always asks about, there would be less "airpockets" and less needless volatility. Stocks may trade with a little more order in that case.

Anyway, thanks for the work you do here. I hope our input will help end the Freaky Hybrid trades forever.

-Dinosaur Trader

by Dinosaur Trader on April 13, 2007 5:46 PM

DT, I read in the new issue of "Traders Magazine" that the specialists have been working on a new Algo that will bring Price Improvement back up to historic levels. It will allow them to be more involved as well as add more needed liquidity. I really believe this will happen cause no one is happy with the current levels. I have been very negative about the Hybrid but with these type of changes that they say are coming maybe, just maybe the stocks show more direction and not have wild swings on 100 share prints. This would also have a positive effect on less liquid stocks that really need more specialists involvement. I am praying. Thanks.

by tony dey on April 15, 2007 9:02 PM

Tony,

Thanks for that news. Not sure if it's related, but I did notice some price improvement this last week.

It was so odd that I wrote it down. I went to purchase a stock with an offer at 58.80 and I was filled at 58.69. I was thrilled.

Anyway, I guess that could also come from order routing to other exchanges. However, I'm pretty sure my execution system would tell me if I was filled somewhere other than the NYSE.

Anyway, thanks for the info, Tony.

-Dinosaur Trader

by Dinosaur Trader on April 16, 2007 7:49 AM

DT, Iam a Dinosaur myself. 15+ years trading so i feel your pain. I was trading in the eight point markets. I thought the Teenies was the best trading by far. I think the NYSE will eventually get it together once we can have all our orders remain on the exchange to recieve the Price Improvement. Thanks

by tony dey on April 16, 2007 7:59 PM

Sunbum -- Thanks for pointing that out; the chimney sweep is working on it and I'll let everyone know when he's done.

Tony -- As far as I know, next up are a Do Not Ship order planned to start rolling out next month (pending SEC approval) and reductions in system latency that are already beginning to take effect. Will have more on these shortly.

Thanks for writing, everyone!

by Ray Pellecchia on April 18, 2007 12:21 PM

Ray, does this mean that orders sent to the NYSE with "DNS" will remain there for the opportunity for Price Improvement even if a better price exists somewhere else? Thanks

by tony dey on April 18, 2007 1:21 PM

Tony -- Yes, Do Not Ship orders will execute only at NYSE, and not route elsewhere. More details to come soon on how they will work.

Thanks for asking!

by Ray Pellecchia on April 18, 2007 7:11 PM