• Jun
  • 16
  • 2008
  • 7:27 PM

Ready for Russell Reconstitution?

By: Ray Pellecchia
File Under: NYSE

Here it comes, here it comes, here it comes, here it comes,
Here comes your 2008 Russell Reconstitution...

OK, the Stones it's not, but here is our note to members that previews the reconstitution, which takes place on 27 June. The memo includes the names of the 155 NYSE-listed issues that will be added or deleted from Russell Indexes; a rundown on special procedures for Limit on Close and Market on Close orders; and five contingency scenariios. Updated lists will be announced by Rusell on 20 June and 27 June.

If you need more depth on the upcoming event, here is the link to Russell's "Reconstitution Central" page.

Wanted to post this a bit earlier but ran into some publishing issues. Better late than never, here's a little historical trivia for today; On This Day (NYTimes.com):

-- Ford Motor Co. was incorporated in 1903. Happy birthday, F!

-- The three-day Monterey Pop Festival kicked off, which according to the Times "catapulted Jimi Hendrix, the Who and Janis Joplin to stardom."

-- The great Stan Laurel was born on this day in 1890 (died 1965). And today is the 67th birthday of songwriter Lamont Dozier.

Comments

Hi Ray,
Usually we see imbalance info at 3:40 and at 3:50. I've read somewhere that there will be more iterations? Is this true?

Also, when is the last time I can place an LOC to offset an imbalance? 3:59:59? If closing price is through my LOC, will I get run over? or will I get the closing price?

by Darren Sklar on June 17, 2008 3:38 PM

Darren -- Yes, you'll soon be getting more imbalance information:

"Opening imbalances will be disseminated every 5 minutes between 8:30-9 a.m. ; every minute between 9-9:20 a.m. ; and every 15 seconds between 9:20 and the open (or 9:35, whichever comes first). Closing imbalances will be disseminated every 15 seconds between 3:40-3:50 p.m. and every 5 seconds between 3:50 p.m. and the close."

That starts July 1. For more information, see this recent post.

Yes, your Limit on Close order must be in by 3:59:59 if it's offsetting the imbalance. If the closing price is through your LOC, you get the closing price -- everyone receives the same price.

Hope that helps. Thanks for the questions, Darren.

by Ray Pellecchia on June 17, 2008 6:36 PM

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