Clips on the NYSE Arca 'Cloud'

By: Ray Pellecchia

File Under: NYSE Arca

• 1 Comments
• Email Entry

Here is the media coverage to date from our announcement earlier this week about NYSE Arca's new initiative to provide clients with routing to a pool or "cloud" of undisplayed liquidity from diverse sources.

Cloud is not the official name, and in fact the initiative doesn't really have a name, but I like the word because in this case, it fits. Orders that don't get matched within NYSE Arca are routed through this cloud of dark indications on their way to going out to another market. If they find a match in the cloud, they save time in terms of latency and have an opportunity to get price improvement. They also have a better opportunity to get filled. So in terms of liquidity, I hope this dark cloud is a rainmaker for you.

Forgive me.

Anyway, this is new for us, so I offer up these clips in case you want to read more on it. No PR guy worth his salt should ever admit to a favorite article or reporter, but I have to confess, the competitive part of me (OK, all of me) is a little partial toward the headline on the first piece.

Arca Beats Nasdaq to Dark Pools (TradersMagazine.com) -- Excerpt: "According to [Senior VP Christine] Sandler, the benefit for customers is additional liquidity, better prices and a method of getting around the fragmentation of non-displayed flow that could cause firms to miss liquidity in the market. She noted that the electronic cloud could provide customers with additional liquidity beyond what is displayed or available in the markets, or additional liquidity priced better than the NBBO."

NYSE Arca Will Connect to Brokers' `Dark Pools' to Cut Costs (Bloomberg.com; no link available) Excerpt: "'It was our preference to route out to a network of our clients,' Christine Sandler, NYSE Euronext's head of North American sales, said in an interview. 'And this gives our clients the ability to access additional points of liquidity.'"

NYSE Arca Routes to Dark Liquidity Pools (SecuritiesIndustryNews.com) Excerpt -- "[Sang]
Lee likened the strategy to that of Archipelago...'in which advance order-routing capability to other ECNs played a crucial role in increasing its overall internal matching rates.' The NYSE Arca service will play 'gatekeeper to other liquidity pools and, if done correctly, should help Arca attract additional order flow,' he added."

NYSE Euronext launches link to dark pools (FinancialNewsOnline.com) Excerpt: "The launch came a week after a market research report said the proliferation of US trading systems has created demand for better access to trading venues."

A rough week in the market, but at least it's over. Until Monday, that is. Try to have a good weekend.

On the lighter side: American railroad engineer Casey Jones (1863-1900) was born On This Day (NYTimes.com) . And I always thought he was just a song character invented by the Grateful Dead! Silly me.