• Jun
  • 05
  • 2008
  • 9:12 AM

'SEC Lays Ground for Real-Time Web Stock Quotes'

By: Ray Pellecchia
File Under: NYSE, NYSE Arca

There has been some Q&A in the Exchanges comments space in the last few days about making real-time, last-sale data available to the public for free. There's news on that front this morning:

SEC lays ground for real-time Web stock quotes (Reuters) Excerpt:

The U.S. Securities and Exchange Commission on Wednesday laid the groundwork that could lead to Web sites such as Google Inc and Yahoo Inc publishing real-time stock quotes.

Most sites not associated with a broker now show U.S. stock quotes with a 15- or 20-minute delay, unless end users pay.

The SEC said it published for public comment an order approving a proposal from NYSE Arca, NYSE's online exchange, that would give Internet sites real-time trading data for a fee.

NYSE Arca's 2006 proposal has been central to a debate over how much stock exchanges can charge websites for real-time last-sale prices. Larger sites have pushed vigorously for SEC approval of a fee structure, but smaller sites argue the fees would be too expensive for them also to list real-time quotes.

An SEC spokesman said the draft order approving NYSE Arca's proposal sets forth an approach for the SEC to evaluate the reasonableness of trade data fees that rely primarily on market forces, so long as the market is sufficiently competitive.

The SEC's action is is not a final approval, but it is a big step forward. It's been a long process, but it's leading to the right result for investors.

Here's a link to the SEC's page containing the order and comments form.

Comments

I'm sorry to always sound so negative on the quality of the ny market, but its hard not to be when you are actively trading this market every day. Does anyone care that every day it seems that more and more of what is quoted on the exchange and the ecn's are completely bogus. Honestly, I feel prob 75% if not more of any substantial bid is cancelled before it can be executed or as soon as 100 shares is traded. Orders get pegged to be .03 away form the inside market and never ever get filled. More and more volume goes off on venues where the average trader can not get a fill. What is going on. Changes need to be made now. Specialists got blamed for manipulating the market, but no specialist could ever do to a stock what these programs do. It's absolutely disgusting. If the sec wants to regulate the markets how about starting with some kind of fine for people (machines) that post orders with no intention of being there when an execution is possible. If the # of times a computer could post a bid or offer without getting executed was set to a reasonable limit, maybe the quality of this once great place to trade would come back.

There are a # of guys on this blog who have done a lot of business over the past decade on the exchange. If it was at all possible, I really feel that a meeting between us and the powers that be could really have a great result. I know that some of the ideas I have could really benefit all.
Thanks again for a place to express my frustrations and ideas.

by josh on June 5, 2008 11:37 AM

Josh, how can anyone be POSITIVE on the quality of listed trading??? Its is an absolute joke. Everything you say is exactly echoed on my desk and EVERYONE i speak with. How an entire public company and their brass, can be so obtuse is remarkable. I mean, are you guys looking at the same stocks we are???? Point is, nothing gets done. Ive been reading this blog since its inception, and can think only 1 major change that has been made. When hybrid 1st came out, the LRP spread was entirely too close (still is/get rid of it) and a few weeks later they moved it out a bit. Thanks a lot, well done guys. If significant changes arent made at some point this CENTURY, i worry about the consequences to the NYSE.

by jt on June 5, 2008 1:10 PM

Thanks for posting this news, Ray. Hopefully it's a step in the right direction. Is it possible to post a response to the SEC for their comments that others could simply cut and paste in the link you provided. Seems a lot of folks may feel similar about this, and having NYX's thoughts being echoed by scores of people, might indicate to the SEC that the investing public is aligned with NYX's views. Just an idea..sort of a 21st century petition?

Thanks again, Ray.

by Barry on June 5, 2008 3:03 PM

Barry -- When NYSE sends its response to the SEC's order, I'll post it. The SEC posts everyone's responses individually in the comment space for the order, all easy to see, so in effect it's kind of like the petition you suggest! Thanks for writing again.

Josh, JT -- All I can say is that there are more and better changes to come. You'll see some of them very soon. Thanks for writing.

by Ray Pellecchia on June 5, 2008 5:16 PM

Ray, no offense but I've heard you say time and time again that changes are coming soon. Back in September there was a lot of dialogue on this blog about incentives that were going to be put into place for specialists to increase participation. Whatever happened to that idea? More promises of changes by the 1st quarter of this year were made, but were again pushed back. Recently on this blog you stated that the SEC would not be able to approve these changes by next year. What????

A lot of people seem to be losing faith. You say that more and better changes will be coming very soon. What exactly are these changes that are coming very soon?

by Ron on June 8, 2008 11:22 PM

Ron -- The main change I'm talking about is changing the specialists' role to encourage more participation. You're correct that we were expecting it earlier this year. I'm told the proposal will be filed any day now.

I apologize for getting the timing wrong. The issues are complex, the interests are many, and we've taken more time in an effort to get it right.

Thanks for hanging in, and for writing.

by Ray Pellecchia on June 9, 2008 7:41 AM

Comment on this entry

Forward this entry to a friend