1x1 size on NYSE

Discussion in 'Order Execution' started by hpex1, May 10, 2002.

  1. hpex1


    Can someone explain why I am starting to see so many 1x1 size quotes on the NYSE, even when I know I have an order on the book in greater size, the true size quote is not being reflected.

    This is happening more and more recently I am not using composite quotes, strictly NYSE.

  2. Just a guess (and I am not sure about this), but it could be something to do with the specialists preventing traders from auto-executing them using NX... Deeman, RTharp, Don Bright, and Praetorian are the NYSE gurus here, maybe pm them or wait for them to see this...
  3. nylord1


    that is exactly it......too many scalping traders are auto-nxing stocks up and down.
  4. My experience too. Lots of 1xn or nx1, too depending on the micro trend at the moment.

    "Adapt or pay up", isn't that the rule of the game?
  5. hpex1


    Thanks for the info guys, that makes sense to me.

    I remember hearing the NYSE was going to make the specailists book "transparent" by showing the market depth. I have not found a way to see the the depth on the NY book, only composite quotes. Does anyone know if that is presently available.

    Thanks again for the help.
  6. Nordic


    Here's a section of the NYSE Direct + rule. I think the 1 by 1 is way to much abused, kinda like a panic button for the specialist to turn off auto ex's while he changes his quote.


    Rule 1000: Automatic Execution of Limit Orders Against Orders Reflected in NYSE Published Quotation

    Only straight limit orders without tick restrictions are eligible for entry as auto ex orders. Auto ex orders to buy shall be priced at or above the price of the published NYSE offer. Auto ex orders to sell shall be priced at or below the price of the NYSE bid. An auto ex order shall receive an immediate, automatic execution against orders reflected in the Exchange’s published quotation and shall be immediately reported as NYSE transactions, unless:

    (i) the NYSE’s published quotation is in the non-firm quote mode;
    (ii) the NYSE’s published quotation has been gapped for a brief period because of an influx of orders on one side of the market, and the NYSE’s published quotation size is one hundred shares at the bid and/or offer;
    (iii) with respect to a single-sided auto ex order, a better price exists in another ITS participating market center;
    (iv) with respect to a single-sided auto ex order, the NYSE’s published bid or offer is 100 shares;
    (v) a transaction outside the NYSE’s published bid or offer pursuant to Rule 127 is in the process of being completed, in which case the specialist should publish a 100-share bid and/or offer;
    (vi) trading in the subject security has been halted.

    Auto ex orders that cannot be immediately executed shall be displayed as limit orders in the auction market.
  7. Certain versions of REDI+ will show the depth of book. For a fee of course...
  8. lescor


    Right now I'm trading an extremely highly correlated spread. I buy/sell one stock based on the actions of the other. But the specialist knows this game is being played with his stock so he almost always shows 1x1. When the other stock starts to move and you try to nx the offer, he only has to give you 100 shares before showing the next offer 15 cents higher.
  9. hpex1


    Thanks Lescor, interesting information.

    Isn't there a requirement that retail public orders be reflected?

    It seems to me that is no longer going on. They will reflect my order only when they know it is filled, display it, fill it and go back to 1x1.

    One really has to trade price and tape action more and more
  10. Its incredible what is going on. Every day I put in orders that are the best bid or ask (with alot of size) and I do not get shown....
    #10     May 10, 2002