I cannot get the webcast that you have referenced to work. Tried it in a couple different browsers as well. You should have your tech team investigate.

by Jay on October 3, 2008 2:55 PM

Jay -- I'm e-mailing you the number for the help desk, but I'm getting bouncebacks on the e-mail address you provided. Please re-send your address and I'll get you the number. Thanks.

by Ray Pellecchia on October 3, 2008 3:12 PM

Does this only apply to floor traders or can anyone put in orders after 4 by just routing to NYSE to offset an imbalance?

by Hugh on October 3, 2008 3:41 PM

Hugh -- Interest from off the trading floor is exactly what we're seeking with this initiative. This memo spells out the particulars, including: "Because Exchange systems do not allow for the electronic entry of orders after 4:00 p.m., such interest must be represented manually by a Floor broker in the closing auction process and entered into Exchange systems by the specialist by no later than 4:30 p.m."

So to send in offsetting interest in a Rule 48 close, you have to come in through a member firm, and the firm needs to communicate the interest to an NYSE floor broker.

Thanks for the question, Hugh.

by Ray Pellecchia on October 6, 2008 10:28 AM

How will this be fair when floor brokers and their customers can send offsetting orders after news has hit stocks after the 4:00 pm close?

By requiring floor broker representation, you are shutting out the 1000's of independent professional traders who trade off the floor but don't have access to floor brokers. If you really wanted to encourage participation and increase liquidity in the closing prints, you'd change the system to allow electronic orders after 4:00 pm.

by Corey on October 13, 2008 1:16 PM

This is a terrible idea. It's going to make closing prints much later, who wants to sit around their screen for an extra 30+ minutes waiting for a stock to close?

Any opportunities I had before to get a good long or short price by taking advantage of large MOC imbalances will now be diminished. And orders cannot even be submitted electronically... Thanks for nothing NYSE.

by matt on October 13, 2008 1:19 PM

Corey -- Those of you who do not use a floor broker can still send in your orders in response to the imbalances published at 3:40 p.m. or 3:50 p.m. and be included in the closing print.

Matt -- The Rule 48 closes have not been that late; 4:30 p.m. is just what the rule says is the absolute latest.

As I mentioned to Corey, you can still send your order electronically in response to the pre-4 p.m. published imbalances, and be included in the close.

On your last comment, do you mean that smaller imbalances will diminish your trading opportunities? If I understand that right, then sorry, we have different objectives. One of our goals is to dampen volatility by attracting interest on the contra side of imbalances.

Thanks for writing, Corey and Matt.

by Ray Pellecchia on October 13, 2008 3:51 PM

You didn't address the first part of my comment. Imagine this scenario. A company is due to report earnings after the close. At 4:10 they release an unexpected number. There is a surge in buying or selling interest. Most people submit their moc orders before 4:00, but if the stock hasn't closed yet, now floor brokers can come in and take advantage of all those orders that were sent before the news was released.

In the age of electronic order flow and order matching, why can't the nyse make electronic order submission after 4:00 possible?

by corey on October 13, 2008 10:05 PM

Corey -- A stock with news coming out would not be allowed to trade.

by Ray Pellecchia on October 14, 2008 7:50 AM