'Slow Quote' Time Plummets 68% in First Day of Wider LRPs

By: Ray Pellecchia

File Under: NYSE

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On Wednesday, 1 October, the first day of the doubled ranges for Liquidity Replenishment Points (LRPs), the amount of time that NYSE quotes were "slow" dropped 68 percent from the average of the previous month.

That's a promising start, and I understand from colleagues that we're going to keep an eye on this, because LRPs might still be kicking in too often.

Slow quotes can be useful in the event of dramatic price swings, to give auction-market participants an opportunity to add some liquidity and stability to the market. But if LRPs are triggered too frequently, bad things happen: executions don't go off on NYSE as they should, and other markets can trade through ours at inferior prices. We're trying to find the right balance between the brakes coming on too often versus no brakes at all.

Question for you market participants out there: have you noticed a difference?

May it be a happy Friday for you. Among the things that happened On This Day in history (NYTimes.com):

1863: President Abraham Lincoln declared the last Thursday in November as Thanksgiving Day. (My favorite holiday.)

1951: New York Giants third baseman Bobby Thomson hit a three-run home run in the bottom of the ninth inning to win the deciding game of a three-game playoff series against the Brooklyn Dodgers, sending the Giants into the World Series.

1955: "Captain Kangaroo" premiered on CBS and "The Mickey Mouse Club" premiered on ABC. (I was a big "Captain" kid.)

1967: Folk singer-songwriter Woody Guthrie died at age 55. (Too young and too little appreciated)

1974: Frank Robinson was named major league baseball's first black manager as he was put in charge of the Cleveland Indians.

2001: The Senate approved an agreement normalizing trade between the United States and Vietnam.