Hey, I'm not the one keeping this erroneous-orders story alive -- I'm just the messenger! TheStreet.com keeps advancing the story; this video report discusses in greater detail how the problem occurred, and covers the resulting problems at Nasdaq.
I'm on vacation next week, so here's a bit of news recap; some beach reading for traders, regulators and techies; and a dose of holiday celebration to send you off.
"This is a text-book case of the NYSE structure working."
That's Duncan, calling it as he sees it, talking to analysts earlier this month.
So is this: "...[W]e are in fast mode almost 100% of the time. This may surprise all of you, I don't think that's a good thing. If I'm hearing the customers properly, they do not want us to be NASDAQ. They do not want another super-fast video game with no price improvement and high volatility. What they want is a market that's fast when they need it to be fast, but also can discover prices for blocks when that's called for."
Today, I'm in about the same place where I started, not knowing what to expect. As I've learned from experience, that's not a bad place to be.
For NYSE Group markets, that is. Still. That's five, zero zero zero, zero zero zero, zero zero zero, plus. Quite a milestone-big number for us.
Plus: Indian companies listed on NYSE raised $6 billion in stock offerings in the last week. That's six, zero zero zero...
Plus, plus: The number of U.S. shareholders increases to 17 million from 10 million during 1952-1962. That's seventeen, zero zero zero,...
OK,OK, I'll stop doing that now.
Welcome to the working week, folks. A colleague reminds me that the big event here this week takes place Saturday, June 30: the industry-wide systems test in advance of July 9, when the the broker-dealer component of Reg. NMS goes into effect.
Today is the last day to sign up for this Saturday's exercise. Click through for the note we sent to the industry last week.
Plus: a Russell post-script; the first black-owned firm joins NYSE; and speaking of notes, a little music trivia.
Record message traffic, top-10 share volume, huge IPO, no issues. Not a bad day. Now, can we do something about the Dow falling 185.58?
NYX looks to a UBS exec to help our U.S. business; Duncan talks about NYSE trading floor and more; reminder about Russell; and the usual quota of historical and musical trivia.
Closing procedures, conference call, contingency scenarios, haiku.
The mondo Russell rebalance takes place this Friday; TransactTools launches a SFTI FIX network; Sam Johnson talks speed; and getting ready for MatchPoint.
Plus, Paul turns sixty-four plus one.
The networks connecting U.S. markets are being tested by overwhelming volume; floor brokers are getting access to "away" markets; brokers (and markets) make bonds easier; and life is in perpetual beta, so why not business?
The DNS order provides the market participant with control over routing decisions for the order. In the event the order would require routing to away market center, it would be immediately canceled by NYSE systems. Firms can send this new order type to the NYSE by including a new routing instruction “DNS” on their orders.
Here's an important step in the right direction: the SEC has approved the ability of NYSE member firms to operate from the trading floor in a manner similar to their "upstairs" desks. This means that NYSE floor brokers will be able to provide greater value and choice to customers, including trading a broader variety of products and non-NYSE-listed issues. The SEC's action gives floor brokers greater parity with upstairs desks and other traders, particularly with respect to handling large-block orders, accessing other markets and diversifying their businesses.
Faster to market means less chance that you'll miss the market when trading, more certainty that you'll get done what you're trying to get done, whether that's an order or a cancel. That's good news for the trading and vendor communities.
Plus: Finding haiku in the tech specs.
Last week's CNN interview with Duncan Niederauer, our president and head of U.S. cash equities trading, got a healthy number of clicks here, so I thought I would mention that Duncan will be among the presenters at tomorrow's NYSE Euronext Analyst Day, which will be webcast live.
"...The international players got up on stage and bellowed that we need standardized (FIX) connectivity to exchanges across Asia-Pac to create efficiencies and lower the barriers to connectivity; the exchanges themselves, however, pointed out that their membership isn't in any real hurry to move from proprietary to open/standardized access."
Links for June 1, 2007: NYSE extends payments to specialists; ETF market misses seed money provided by specialists, even as ETF issuance and trading volume increase; and Lehman eliminating its floor brokers. And on the historical trivia front: on this day, the term registered rep is born; Lou Gehrig pinch-hits his way into history; Ron Wood is born; and it was twenty years ago today -- no, make that thirty -- Sgt. Pepper taught the band to play.
