From Jim Ross: Now NYSE members will be able to leverage their existing NYSE CCG connections to route to NYSE "super" non-displayed book: MatchPoint!
From Jim Ross: Our markets may support alternative models but they should not support alternative trade-reporting standards.
"SEC spotlight puts 'dark pool' venues on defensive" and "Rise of the (Market) Machines." Plus: today's installment of Great Russells in World History.
From Jim Ross: MatchPoint provides precisely the type of liquidity-aggregation and lowest-possible-trading-cost environment that complements if not unleashes the full potential of trading algorithms.
The alternative-trading-system model is "free form and flawed. I think it needs to be reformed," says the head of Matchpoint, NYSE Euronext's point-in-time crossing platform.
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.
From Jim Ross: MatchPoint also enables you to noiselessly access aggregated natural block liquidity while minimizing transaction costs.
From Jim Ross: Liquidity aggregation, complete informational control and trade transparency all at the same time!
Today we find a marketplace awash in alternative trading system (ATS) business models competing on the basis of liquidity, speed and rates rather than dark-order innovation and quality of execution.
UNTERMYER: Is not commercial credit based primarily upon money or property?
MORGAN: No, sir: the first thing is character.
UNTERMYER: Before money or property?
MORGAN: Before money or anything else. Money cannot buy it.
So consider this an invite to the party. You never know who you might meet. Or should I say, you never know whose orders might meet yours. Because it's anonymous. Non-displayed. And it's centralized. Neutral. Level playing field. Can trade blocks or portfolios. Will watch your kids if you need a night out.
OK, the baby-sitting is extra.
For a dark pool to be truly effective across the transaction-cost spectrum (and thus capable of trading large blocks), it needs to be more than just “dark.”
I am beginning to realize that what we may see before us can often prevent us from seeing the real truth.
...and says better connectivity between dark pools and exchanges is the best solution. Which is exactly what we're trying to do.
NYSE MatchPoint is drawing near to the day when we’ll drop the flag for the first matching session — the after-hours match at 4:45 pm Eastern.
In January, we received SEC approval and rolled our platform into production. Since that time, we’ve been working feverishly to authorize and connect the backlog of NYSE members into MatchPoint. Every NYSE member firm and every major OMS/EMS vendor are engaged with MatchPoint in some form or fashion.
Three significant articles about three significant developments in our MatchPoint, options and TransactTools segments.
Five key things to know about our upcoming MatchPoint facility.
"Investors that rely on index-based or model-driven trading and investment strategies will find NYSE MatchPoint’s portfolio-based capabilities to be a very effective trading tool. In addition, NYSE MatchPoint’s non-displayed, point-in-time approach aggregates individual block orders and increases the depth of the liquidity pool and enhances the opportunity of a natural match."
...and further discussion of our strategy to provide customers with more choices to access liquidity. It's not a question of zero-sum, either-or. Instead it's: choose any or all of the above.
"...bringing block-size orders back into contact with active traders, algorithms and retail flow."
Our financial markets have been built upon the premise of transparency. In fact, it would be mighty difficult to effect price discovery without it! So does the explosion of dark pools threaten the basic underpinnings of our markets? Will all the liquidity get sucked into these dark pools at the expense of the fair and virtuous maiden that we call "price discovery"?
MatchPoint represents a profound and intriguing strategic shift for the NYSE.
MatchPoint and I are new to the Exchanges blog but we are very excited about participating in an ongoing discussion about dark pools, crossing networks, the ATS (alternative trading system) industry in general and NYSE Euronext's ATS strategy and services like MatchPoint.
Links for 25 July 2007: SEC approves "upstairs" capabilities for NYSE floor brokers; new exceptions to NMS rules; NYSE MatchPoint to debut; Liffe plan puts traders at odds; Tony Soprano's management lessons. Plus, on this day in rock history: Dylan shocks 'em at Newport.
The mondo Russell rebalance takes place this Friday; TransactTools launches a SFTI FIX network; Sam Johnson talks speed; and getting ready for MatchPoint.
Plus, Paul turns sixty-four plus one.
From the press release: new crossing system provides trading-technology solutions for investors and market professionals; open architecture offers next-generation crossing opportunities.
