• Nov
  • 05
  • 2008
  • 3:08 PM

Linkstock: Reference Materials for NYSE's Next-Generation Market Model

By: Ray Pellecchia
File Under: NYSE

For those who keep up with this stuff (and may I say, bless you and thank you), 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.

Various reference information, including technical specifications, notices of changes for Liquidity Replenishment Point parameters for individual issues and the list of issues that are in sub-penny trading halts on NYSE.

Also included on the page above is the list of participating stocks for the first phase of this rollout, which I break out separately here because of all the interest in the list. Note, in this first phase, Specialists become Designated Market Makers (DMMs) and can trade on parity with others; and customers are able to send reserve orders with no displayed amount. The next phase will come later this month, when DMMs being doing their electronic participation via a pre-programmed Capital Commitment Schedule.

Overview page for NYSE equities trading, a good start page from which to get to all of the above; we'll soon be adding more material to this page explaining each of the roles of the Designated Market Makers, Trading Floor Brokers and Supplemental Liquidity Providers.

Basic fact sheet on the changes in the market model.

Updated guide to order types.

SEC approval order of the enhancements to the NYSE market model.

NYSE's original rule filing for the enhancements, plus amendments 1, 2 and 3.

And last but not least (because it's my day job and I need that gig), the press release announcing the SEC's approval.

That's it for now; will update you with future developments on that front.

On the historical-trivia front, today is Ida Tarbell's birthday (born 1857; died 1944). If you don't know who Ida Tarbell was, check out her New York Times obit. Her "History of the Standard Oil" and the work of other muckrakers left a lasting impression on me when I was in college back in the previous millennium.

Comments

Ray,

If I read all the above correctly, as of 11.06.08, the "dark" orders are already in effect for about 700 stocks?

Also, what do the brokers need to do in order to comply with the new order types/formats - who should they be contacting on the tech side?

Thanks!

by Sin Radovcic on November 6, 2008 2:21 AM

Sin -- Yes, you're correct on the dark reserve orders.

The tech spec for the reserve orders is here:
http://www.nyse.com/attachment/Reserve_II.doc

My understanding is that's the only new order type. All of our other tech specs can be found on the "various reference information" page (the first one on the original post above). If you need more information, the firm's client representative here should be able to help. If the firm doesn't know who that is, let me know and I'll arrange something privately for you.

Thanks for writing, Sin.

by Ray Pellecchia on November 6, 2008 8:00 AM

Ray,

How long will it take to go from "pilot program" to fully integrated? Would it be fair to say that by next earnings season (mid January)that we'll be 100% implemented or at least close to it??

Thanks,

-KMF

by Kevin Fitzpatrick on November 6, 2008 5:24 PM

Kevin -- Everything described above is on track to be fully implemented before year-end 2008.

Just one thing to note regarding your mention of "pilot": the Supplemental Liquidity Provider program was approved by the SEC on a six-month pilot basis. So even though we're fully implementing it now, we do need to go back to the SEC in six months to either extend the pilot, revise it if appropriate, or ask that it be permanently approved.

Thanks for writing, Kevin.

by Ray Pellecchia on November 7, 2008 10:40 AM

pass the closing and open price to email that connected to you,daliy basis

by AJIBADE ADEWALE on November 11, 2008 11:09 PM

With the specialist/DMM unable to interposition himself perhaps the open can become streamlined and more transparent?
If the NYSE is to lead it will have to have an opening call - like the Toronto Stock Exchange.
IF is not the question. It is When?

by Bruce Duncan on November 12, 2008 7:23 PM

Ray,

Would it be possible to get the list of stocks sorted in alphabetical order? It would make life easier searching for specific stocks that are participating in the pilot...


Thanks,

-KMF

by KMF on November 13, 2008 9:46 AM

KMF -- All I can offer is the Excel spreadsheet with the stocks grouped by when they went into Phase 1 -- not in alpha order. Sorry. Must be a way to alphabetize it; any Excel experts out there?

Might be moot point anyway; the rollout of Phase 1 completed today. All of our listed issues are now in.

Thanks for writing, KMF.

Bruce -- I'm not familiar with what Toronto does, but we do have a call at the open and close -- the biggest in the world. Thanks for writing.

by Ray Pellecchia on November 13, 2008 8:47 PM

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