The SEC's action is is not a final approval, but it is a big step forward. It's been a long process, but it's leading to the right result for investors.
Mid-Point Passive Liquidity orders offer price improvement, better fill rates and now, attractive rebates for active customers.
Plus, to lift the heart a bit on a Monday morning: the sun lifts the rain in veils of mist, and a photographer in my town captures it.
...and says better connectivity between dark pools and exchanges is the best solution. Which is exactly what we're trying to do.
Transaction growth across the board and across the Atlantic. Plus: numerical trivia, weekend edition.
On an afternoon when the Yanks' Opening Day got rained out, a bit of good news.
So says Tabb Group CEO and founder Larry Tabb, quoted in a brief Securities Industry News article with the wonderfully succinct headline, "Equity Venues > 55."
So much for the NYSE-Nasdaq duopoly you read so much about a couple of years ago. Competition appears to be more alive and well than ever in the equity markets.
Cloud is not the official name, and in fact the initiative doesn't really have a name, but I like the word because in this case, it fits. Orders that don't get matched within NYSE Arca are routed through this cloud of dark indications on their way to going out to another market. If they find a match in the cloud, they save time in terms of latency and have an opportunity to get price improvement. They also have a better opportunity to get filled. So in terms of liquidity, I hope this dark cloud is a rainmaker for you.
Forgive me.
"-- Increased potential for filling orders;
-- Potential for price improvement;
-- Extraordinary access to liquidity with 29 confirmed participants, comprising the largest collection of non-displayed liquidity pools available in the market;
-- Access to 3 1/2 times the number of routing destinations offered by the nearest competitor."
An update: NYSE Arca traded 2.8 billion shares yesterday, a new record. ArcaBook recorded an all-time high 670 million updates. Arca processed 47.4 million orders, believed to also be a record.
"By trading more of their Tape C [Nasdaq] volume on NYSE Arca, customers will reduce their net rate by 80% to $0.0001/share."
Morituri te salutamus.
Leave it to Art Cashin -- a classic himself -- to come up with a classic reference in a historical language. Not up on your Latin? Translation and some Crash of 1987 reflections after the jump.
...and other links for 27 Sept. 2007.
Here's a comparison of NYSE Arca fees for Tape C (Nasdaq) stocks vs. those other guys. OK, no mystery as to who wins, but we're just saying.
Plus, from the archives: Ike (and the market) suffer an attack; and Her Majesty's a pretty nice girl.
NYSE Arca Options has consistently offered the best price FOUR TIMES MORE OFTEN than any other market center for options that are included in the SEC’s penny pilot program.
I don't have the full report, but judging from the chart, it looks to me like the marketplace closest to the optimal "good prices and fast" is none other than NYSE Arca.
