These are exactly the kinds of things many of you have been calling for in your comments to the Exchanges blog. Thanks again for sharing your opinions and trading experiences. We're listening.
Or will I lose yoooouuuuu,
to another blog?
But before I start crooning, which if I this were a podcast would really send you crashing your keyboard through your monitor, here are a few links for today.
Plus: Curtiss-Wright took flight on NYSE on this date in 1929.
MatchPoint represents a profound and intriguing strategic shift for the NYSE.
Specialists remain a lightning rod for conversation, as I found out when I posted an item last week.
More, more, more. Just call me the Andrea True Connection.
On second thought, forget I said that. Thanks.
"The European exchanges run by transatlantic bourse operator NYSE Euronext had their busiest day ever on Friday, as markets first fell then, in the wake of a U.S. Federal Reserve discount rate cut, sharply recovered."
Neither hedge funds nor anybody else should be expected to act like specialists. No one else has the same obligation that specialists have -- to apply their capital to counter rapid market swings and dampen volatility. That's why it's critical for us to have a rule set that encourages specialists to participate in this way, when appropriate.
MatchPoint and I are new to the Exchanges blog but we are very excited about participating in an ongoing discussion about dark pools, crossing networks, the ATS (alternative trading system) industry in general and NYSE Euronext's ATS strategy and services like MatchPoint.
The conversation continues on what's causing the recent volatility in the market. Plus: farewell to the Scooter.
The tick restrictions for the top 1,000 stocks...were actually lifted in May 2006 as part of the Reg. SHO pilot. To say, therefore, that the recent volatility in the Dow was a result of the SEC's decision to lift the restrictions permanently, is specious. If the argument had merit, there would have been a corresponding spike in volatility in the Dow (and howls of protest) stretching back to May '06.
Rule change ticks off some traders; ETF providers take issue with Reg. NMS; and spelling counts.
Dean Bruner dissects the Panic of 1907 and its relevance for today; volatility drives some day traders, and drives out others; a quant sees a shakeout for the ages; a new book argues that financial innovations have made markets more volatile and interlinked; and a supermodel eats at McDonald's before visiting NYSE. Plus: Jay Buhner for Ken Phelps?
NYSE Group traded more shares than any other U.S. cash equities market, registering a new top-10 volume day each day of the week, including a new all-time record of 5.37 billion shares traded on Aug. 9 and a record average daily volume of 4.7 billion shares traded daily during the week.
Have we ever had a full week of top-10 days? Will have to check into that.
Links for 9 August, 2007. Among them: results of the Traders Magazine survey about the NYSE Hybrid Market; NYSE Euronext trading volume grows across the markets; NYSE Bonds enlists market makers; NYSE lists 40 Chinese companies valued at $1 trillion total; and the world's most famous market may be at 11 Wall St., but it's not the world's biggest. Plus: happy birthday, John Dryden.
"What I would imagine is you will expect to see us, on or about September 1, begin to distribute a similarly sized pool, all other things being equal, but it will be much more tied to quoting performance and liquidity provision performance, which I think are much more closely tied to market quality."
Links for 3 August, plus: What breathes the species.
Forgive me for repeating the memo's use of all caps, but once again I'm trying to get folks here to notice that IN THE AGE OF THE WEB, WRITING IN ALL CAPS = SHOUTING. They haven't gotten the memo. I also want to suggest that they consider summarizing complex information in haiku. At no charge, I've taken the liberty of drafting one for that could intro this particular memo:
We're flexible, but
build your supervision to
address these issues
No, really, no charge. But if you want to name me Honorary Chief Regulatory Haiku Officer, that's cool, I'll try to manage the conflicts of interest with my business agenda.
Every major trading firm on the Street has a trading floor that probably dwarfs or at least rivals the NYSE's in size. It's filled with people talking with customers, looking at screens, talking to other traders, using their judgment, taking risk, sending and executing orders -- in other words, trading. In particular, they work on the bigger, more difficult trades, the ones that are tough to do with machines alone. The people on the NYSE trading floor do the same things, except standing up instead of sitting down.
My point is that all those people in all those trading floors on the Street are adding value to customers, or they wouldn't be there. Ours are doing the same. And with their perseverance and the changes that are underway here, they'll continue to do so.
