See you in September

By: Ray Pellecchia

File Under: NYSE

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But before I start crooning, which if this were a podcast would really send you crashing your keyboard through your monitor, here are a few links for today.

On Quiet Floor, Brokers Say They Could Have Limited Volatility; Amid Tumultuous Market, NYSE Floor Traders Feel Sidelined (ABCNews.com) -- "The switch to a hybrid market, which combined the traditional floor auction market with automated electronic trading, has had its benefits. Chief among them has been an ability to handle much greater trade volume and allow more players into the trading game....But there have been drawbacks, and they are most visible -- and detrimental -- during market crises, several brokers and specialists on the quiet trading floor said Monday."

I agree with the premise that having specialists and floor brokers participate in the market reduces volatility and trading costs. Research backs that up. There are people here who are taking the bull by the horns and working to achieve a healthy balance between auction and automation. I know, I've said it before, but here I could read this article a million times and I still think and believe the same thing: my money is on them.

NYSE Group Inc. Issues Monthly Short Interest Report (NYSE.com) The conventional wisdom was that short interest would have increased in connection with the repeal of the "Uptick Rule," but here's the reality: "NYSE Group reported short interest as of the close of business on the settlement date of Aug. 15, 2007, reflecting transactions through Aug. 10. Based on information received from members and member organizations, short interest decreased to 12,492,322,636 from 12,950,726,148 as of July13, 2007."

Open Outcry (Trader Monthly) -- The magazine runs a survey and asks: "If you could parlay some insider info into a guaranteed $10 million trade but knew you stood a 50 percent chance of getting arrested for insider trading, would you?" (No: 93 percent.) Then, how about a 10-percent chance of getting caught? (No: 72 percent.) No chance of getting caught? (Yes: 58 percent.) As you might imagine, that's the survey question most of the press focused on. Stupidity+immorality=headlines.

Parochial as ever, I focused on this survey question:

In one year's time, the NYSE will be...

-- Thinned out considerably but still semi-bustling (65 percent)
-- All but closed down (18 percent)
-- An interactive museum (17 percent)

You know how I would have voted.

Happy Wednesday, folks. Starting tomorrow I'll be taking some time off, so this space will be pretty quiet until after Labor Day. I might be inspired to do a little BWV (blogging while vacationing), but for the most part I'll be looking to kick back and re-charge a bit. So enjoy what's left of summer, be mindful of the danger in the summer moon above, and I'll talk to you in September.

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