• Jun
  • 19
  • 2007
  • 1:44 PM

More about the Russell reconstitution

By: Ray Pellecchia
File Under: NYSE

Reconstitution
of the Russell Indexes
takes place on Friday

OK, I'm on a haiku kick. So shoot me.

At the risk of over-communicating on this Russell reconstitution, here's more on how the event will be handled at NYSE, where 154 NYSE-listed stocks will be added or deleted, according to preliminary lists. This memo covers MOC/LOC procedures (that's market-on-close/limit-on-close to you newbies), customer communication and contingency scenarios.

If you need to know when the Consolidated Message Switch opens for MOCs and LOCs (7:30 a.m.); the deadline for MOC/LOC order entry and cancellation (3:40 p.m.); and the exceptions to various deadlines, this stuff is for you.

The memo also recaps the details of the conference call that will take place that day, and walks you through five different scenarios of what we'd do should a problem occur.

I'm not looking to hurt my arm patting ourselves on our back, but I don't think we've ever communicated this much good information in advance of a market event.

I like it.

A bit of historical trivia before I let you go: On This Day, Lou Gehrig was born. The Iron Horse was best known for his 2,130-game playing streak, but also set dozens of records, including: five seasons with 150+ runs batted in, 23 career grand slams, one season with 184 RBIs, a .361 batting average in seven World Series, and many more. He also, of course, was the epitome of grace, humility and class in the face of the disease that tragically ended his career and then took his life.

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Comments

Ray,

Thanks for being ahead of the curve on this one. Last year this was quite a crazy event. Should be interesting.

Meanwhile, I think daytrading is over for me. I'm trying new strategies now.

If I can't make it work in the next 6 months you think the NYSE will hire me to help you with this blog? They owe me. HAHAHA!

-DT

by Dinosaur Trader on June 19, 2007 2:55 PM

Keep up the good work Ray!

by jimmy on June 20, 2007 10:17 AM

Ray, i posted this here cause i wanted to make sure you got it. Does the NYSE have a "DNS" Market Order? Thanks

by tony dey on June 20, 2007 4:53 PM

DT -- I'm always amazed that anyone can daytrade successfully. I hope you prosper with your new strategies, and that in six months' time you'll have no need to look to this humble fellow blogger for a gig.

Jimmy -- Thanks, that means a lot!

Tony -- We don't have a Do Not Ship market order per se. A colleague explains that the DNS order type actually refers to an order that will post (quote) to the book but cancel if it needs to ship, and market orders do not post. The suggestion here is to try a Reg. NMS IOC (Immediate or Cancel) market order, which will cancel if it needs to ship.

by Ray Pellecchia on June 21, 2007 10:27 AM

Ray, I want my order to be executed on the NYSE without being shipped but i want to make sure the whole order gets done. I dont want the added cost of being shipped to another exchange. Thanks

by tony dey on June 21, 2007 12:49 PM

Ray,
Where can one find a daily list of new listings/deletions of NYSE stocks.The "new listings news releases" link tends to not keep up with the IPO's being listed on the NYSE. I have scoured your website on numerous occasions, but cannot seem to find it. With Blackstone scheduled to start trading today it is amazing there is zero info on the NYSE website.

by Jimmy on June 22, 2007 8:03 AM

I'm curious expecially for today, if limit oders will get price improvement for the closing print. Or will they just get hit or taken.

by josh on June 22, 2007 9:10 AM

Jimmy --

Notices of new listings and removals are posted on a password-protected Web site, NYSENotices.com.

To obtain a password, please send an e-mail to Michele Lee (michelelee@nyse.com); cc: aaliberti@nyse.com

Thanks for writing, Jimmy!

by Ray Pellecchia on June 26, 2007 3:42 PM

Thanks to Jimmy for asking that question - how to see what issues are being added to and removed from the NYSE. I got the last issue of the weekly newspaper Barron's (7-23-07), and it says that four new companies listed on the NYSE last week, while five companies had their trading suspended (page M59). Looking on nyse.com I only saw News Releases for two of the new companies and one of the suspended companies. One wonders if the NYSE will provide a list of these changes on their web site. What century is it again?

by Michael on July 27, 2007 3:44 AM

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