• Oct
  • 31
  • 2007
  • 6:16 PM

Three words: NYSE. Open. Free!

By: Ray Pellecchia
File Under: NYSE

This note just went out to customers. No Halloween trick, either. Instead, starting tomorrow, the open is our treat.

Effective November 1, 2007, the New York Stock Exchange (NYSE) will offer free trading to all customers in NYSE securities (excluding ETFs) for market and limit orders executing on the opening price, including Market-On-Open (MOO), Limit-On-Open (LOO) and Good-Til-Cancel (GTC) orders.

In addition, the NYSE recently established a more efficient opening process that allows specialists to automatically open stocks for trading quickly and more efficiently, freeing them up to focus on larger situations with imbalances in an effort to discover the best price. The NYSE has the most liquid opening and a superior process for handling imbalances and facilitating better price discovery. Specialists play a vital role in managing imbalances and establishing the best opening price, including providing additional support to minimize imbalances and avoid unreasonable price variations.

In November, the NYSE will be providing real-time pre-open indicative prices, which will be available both to the NYSE floor community and through the NYSE Alerts data feed. The NYSE plans to offer additional pre-open information in the future.

If you have any further questions please contact your Relationship Manager.


Comments

Having been a former stock exchange floor broker, I will say that it is the best pricing mechanism and openings will have a more balanced structure between any imbalance by the dealer interjecting his capital to offset trades

by Stephen Denman on October 31, 2007 10:02 PM

Thanks for writing, Stephen! Much appreciated.

by Ray Pellecchia on November 1, 2007 6:14 AM

Is there a time that orders need to be in by to get the opening print?

by John Kahan on February 27, 2008 11:06 AM

John -- Stocks generally will open right at 9:30; sometimes a little later. To be on the safe side, you should get the order in before 9:30.

Hope that answers your question. Thanks for writing!

by Ray Pellecchia on February 28, 2008 8:07 AM

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