- Nov
- 14
- 2008
- 8:31 AM
NYSE Completes Phase 1 of Next-Generation Rollout Is Complete; Phase 2 Underway
- By: Ray Pellecchia
- File Under: NYSE
Yesterday, NYSE completed the rollout of Phase 1 of our next-generation market model, and began Phase 2.
For those tracking these changes, here is the complete list of issues and when they joined Phase 1.
Now, for all of our issues:
-- Designated Market Makers trade on parity with others, and no longer act as agent (as Specialists did) for orders on the limit-order book. DMMs are now paid based on their quoting and trading performance;
-- Customers now have a choice of two types of reserve orders: Dark Reserves, which are completely hidden to the DMM and are available to trade with all electronic orders; and Block Reserves, which are eligible for price discovery on the Trading Floor and have a requirement of at least 100 shares displayed.
In Phase 2, DMMs' electronic responses to incoming orders will be pre-programmed into a Capital Commitment Schedule that will be part of the DispIay Book. When fully implemented, this will reduce order latency by as much as a third and will eliminate what little is left of the advance look at incoming electronic orders.
We aim to complete this phase in early December. My understanding is that we won't publish a list of Phase 2 stocks -- this phase involves no change of action on the customer's part -- but we'll keep you apprised of progress.
On a personal note, if you're wondering why the market fell sharply yesterday and then rallied back even more sharply, with the Dow ending up more than 500 points after a 900+-point swing, I don't know, but it has NOTHING TO DO with the fact I had the day off. Really. I swear. I'm not going there again.
Comments
It is because you had the day off!! :0) Well reducing order latency by as much as a 1/3 sounds fantastic! Piece by piece I still believe NYSE Euronext can do it, even though time is running very thin!
One good thing about this market and economic downturn is it gives NYSE Euronext the time it needs to merge, integrate, cut expenses, roll out new programs and technology etc. while buisness and is slower for all exchanges and then be ready for the market and economic recovery fully loaded and ready to go with all engines running! I hope NYSE Euronext uses 2009 VERY wisely to prepare itself for 2010, which will be the time to come on full force! My belief is 2010 is a do or perish year for NYSE Euronext....... Let the games being!
by Mark T. on November 14, 2008 9:54 AM
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