High-frequency traders (who do the majority of the share volume these days) talk about arbitraging between one exchange and another that is milliseconds faster in trade execution; and other links.
Deeper liquidity, more accurate price discovery, broader participation, all at one of the most critical times of the trading day.
"The Commission can, we believe, adopt a similar but simple, effective and more
prohibitive Short Sale restriction that takes into account how equity trading has changed
over the past several years since the original Uptick Rule was eliminated."
The numbers are almost unbelievable, a CEO says. Millions of deaths, millions of orphans. People throw up their hands and say, what can we possibly do; it's too big.
Or maybe it isn't.
In a short eight months, the Amex got a complete makeover. The magnitude of what happened was staggering. A new trading floor, a new trading platform, and a new broker trading system all went live on March 2 despite a winter storm that dumped seven inches of snow on Lower Manhattan. What it means for NYSE Amex Options retail customers and professional traders alike is vastly improved speed, capacity and reliability, with the tighter markets and more liquidity that comes along with superior technology.
From Scott Cutler: I was very impressed with the soundness of the Brazilian financial system. Brazilian banks have shown no signs of being contaminated by problematic assets and are showing healthy balance sheets. Interest rates remain relatively high at around 12%, with expectations that rates may dip below 10%, a rate that "had never been seen" by tenured executives at the largest banks. However, Brazil today is very different from its turbulent past.
Exchanges vying to clear credit derivatives say there is room for several to succeed; World Autism Day will kick off with the NYSE Opening Bell; the Great Fire of 1835 is recalled with a vivid blog post and podcast.
From Scott Cutler: With all the buzz about Bernanke's comments on 60 Minutes last night, you may not have seen the Reuters article outlining some of the NYSE's efforts with emerging growth companies. While the NYSE is proud that it lists some of the largest and best-known companies in the world, few are aware that some of the fastest-growing brands and companies list here too (think Netezza, RackSpace, NetSuite, K12 and 3Par, among others). In fact, about a third of NYSE-listed companies have a market cap of less than $1 billion.
From Scott Cutler: Small and medium enterprises have seen increased difficulty in their ability to raise funds due to the global financial crisis. We see a partnership with NYSE Amex as part of the solution. A listing here offers significant opportunities for companies to establish a presence in the international capital market, access more investors and be associated with a global brand.
From Jim Ross: If you do not know where your orders are, how they are being handled or are not able to control them, then they will get into trouble.
Three items of particular interest in the March Traders Magazine
On my menu for breakfast: deja vu and waffles.
I actually don't know if today's rally had anything to do with talk of restoring some version of the "uptick rule," which is a restriction on short selling in downward-moving markets. Correlation, causation, who cares -- I'll take today's rally and leave the analysis to the experts.
There still are some people regarded as experts, yes?
From Scott Cutler: Today marks the first day of “when issued” trading for Time Warner Inc’s (NYSE: TWX) spin-off distribution of its ownership interest of Time Warner Cable Inc. (NYSE: TWC). Unlike an IPO, a spin is unique because the market has the ability to get an early feel for how the companies will trade after the transaction. Both NYSE and NYSE Amex consistently use when-issued trading, which benefits both the investors and the listed companies.
Four bits of news today from these parts.
As a reminder: these changes are designed to attract stabilizing liquidity to NYSE-listed issues with significant imbalances at the end of the trading day.
"Every year, roughly 5,000 bills are introduced, while a few hundred pass, he added. DeFazio's hope this time is that the tax becomes part of the Ways and Means conversation about how to recoup the TARP funds. 'I am throwing it into the mix,' he said, 'but I have no expectations.'"
Duncan: "If the question is, 'Would people think it's a fairer game if we had an uptick rule?' the answer is 'Yes.'"
"It would decimate liquidity in the market in an unprecedented way," my boss said.
The company has important news to cover in Brazil and Santa Monica, and your humble blogger is willing to make the terrible sacrifice of leaving New York (18 degrees Fahrenheit this morning, not that that matters to me) to deliver first-person blogging from the business front. In Brazil. And Santa Monica.
My colleague Marisa Ricciardi submits:
Whatever the economic climate, the world looks to NYSE Euronext for leadership and perspective from the center of global financial markets. These times of crisis set the stage for unprecedented opportunities for market participants to communicate, collaborate, network and exchange ideas that will lead to solutions to move us forward. The responsibility is ours to foster this exchange.
But what Mr. Ratterman doesn't say is that he's making an apples-and-oranges comparison. BATS trades NYSE-, NYSE Amex- and Nasdaq-listed issues, while NYSE trades only NYSE-listed issues. Let's look at the real, apples-to-apples comparison.
Pricing is one component of enhanced competitiveness; speed is another; the others are new trading tools and rules designed to maximize liquidity. And the only differentiated market model around, don't forget that one. Stay tuned here for more on this front.
