This information memo lays out very thoroughly (13 pages) and in simple-enough-that-even-Pellecchia-will-get-most-of-it language the major changes in the NYSE trading model we've been talking about lately on this humble blog.
“This difficult environment is giving us a chance to prove our value to all our clients,” says Lawrence Leibowitz, head of U.S. execution and global technology.
Plus: NYSE-listed stocks are ranked the world's least expensive to trade, for at least the third year in a row, and the cost keeps going down.
We've changed our system to be able to recognize sub-penny prices at which other markets might quote those stocks, so we can route to those markets if appropriate, as required by Reg. NMS if another market posts a better price.
A progress report.
As the New York Stock Exchange continues the rollout of our next-generation trading model, and recognizing that we're making significant changes, I thought it might be useful to summarize the main roles and responsibilities of each of the three key market participants: Designated Market Makers, who have succeeded Specialists; Trading Floor Brokers, with their new tools; and the new Supplemental Liquidity Providers.
Here's a rundown on the new issue of nyse magazine.
Here are a few links to reference information about the rollout of the next generation of New York Stock Exchange. Hope it's of some use, and apologies for not pulling this together sooner. The world is turning too fast for this old analog guy.
Maybe it's that the editors are looking for a photo that will give the reader a shorthand way to know what's happening. The reader sees a chart pointing down, a photo of a trader with head in hands, and the reader immediately knows what kind of a day it was in the market. I hope editors will also remember that fans of newspapers and markets look to papers for compelling, different photos to go along with in-depth, insightful articles. Give us something that grabs us and draws us in.
"Mr. Trimble, 41, works at the edge of the exchange’s main floor, shoulder to shoulder with six other men in a booth the size of an elevator car. Not everyone graduated from college, but all are resident scholars of the hurly-burly floor, educated in reading markets, hunting for matches and executing buy-and-sell orders. They are worth their commissions, they say, because they provide things a computer cannot, things like experience, intuition — a 'feel.'"
