NMS, one month later; Duncan in 'top 40'; big interest in short interest

By: Ray Pellecchia

File Under: NYSE

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No news is good news for Regulation NMS (FinancialNews-US.com) -- "US brokers and banks breathed a collective sigh of relief last week as they completed the first month of trading under new Securities and Exchange Commission rules. Michael Rosen, senior vice-president of product development at electronic agency brokerage UNX, said: 'It was like Y2K; everyone was prepared but a lot of work went into it.' Few issues have arisen since the deadline when broker dealers were required to comply with the requirements of the SEC's Regulation National Market System best execution mandate for orders in 250 pilot stocks."

The Online Finance 40 (iimagazine.com) -- Our Duncan Niederauer is No. 2 in Institutional Investor's annual ranking of innovators in financial services. Number 2? That's OK; leaves him something to aspire to. "FLOOR TRADERS ARE here to stay, insists Duncan Niederauer. That's an unexpected stance from the president and co-­chief operating officer of NYSE Euronext, given the precipitous decline in floor-based trading at the exchange. In February the NYSE rolled out a hybrid system that integrates electronic execution with open-outcry auctions; since then roughly 82 percent of volume and nearly 92 percent of trades have been executed electronically, compared with a prehybrid average of only 19 percent and 28 percent, respectively. But Niederauer, 47 -- a 22-year Goldman Sachs Group veteran who joined the exchange in April when the NYSE merged with automated European derivatives exchange Euronext -- has been helping to create new opportunities for floor traders. In June he told analysts he is working with the Securities and Exchange Commission to change archaic rules and level the playing field for specialists, such as the recent modification that lets floor brokers who deal in NYSE-listed stocks also trade bonds, Nasdaq stocks and exchange-traded funds. 'Customers do not want another superfast video game with no price improvement and high volatility,' Niederauer says. 'What they want is a market that's fast when they need it to be but also can discover prices for blocks when that's called for.'"

US August short selling data to be closely watched (Reuters) -- "As the stock exchanges prepare to release their monthly short interest reports this week, Wall Street is waiting with more anticipation than usual. This month's short selling data marks the first full month in which investors will be able to see how the removal of the 'uptick rule, which restricted how short sellers could trade, has affected the markets. Short interest has been steadily rising to record levels since February and investors will also be looking at the data for information about how short sellers may be affecting market volatility."

Today in NYSE History(NYSE.com): 21 Aug. 1929 --Curtiss-Wright Corporation stock began trading at the NYSE. Well, happy anniversary, CW!

Tags: New York Stock Exchange, Hybrid Market, NYSE, trading, stock market, Duncan Niederauer, short selling, SEC, Reg. NMS