Auction market based execution?

eusdaiki · Feb 15, 2008

Hey, I got this notice from the NYSE:

Beginning on January 25, 2008 the NYSE will be making a change to the current Unit of Trade (UOT) for Berkshire Hathaway Inc. (BRK A). Currently, both BRK A and BRK B are ten (10) share UOT securities. On January 25th, we will convert BRK A to a one (1) share UOT, resulting in a trading environment that would preclude any odd-lot executions and orders. Please Note: BRK B will continue as a ten (10) share UOT security. As a result of this change, all orders for BRK A will now be exposed to the published quote for display and continue to be eligible for auction market execution only. Below are additional key points regarding this implementation:
1. Good to Cancel (GTC) orders for BRK A entered prior to January 25th would retain the original 10 share UOT. Therefore, the NYSE will purge all GTC orders for BRK A after the close on January 24th. Note: you will not receive a UR Out when we purge the GTC order files. If you would like to receive a UR Out, all firms will need to cancel their orders prior to the close on January 24, 2008.
2. The DTCC master file feed will be updated after the close on January 24th allowing firms to update their trading systems for the BRK A Unit of Trade (UOT) change.
3. The maximum order quantity for BRK A will be 30,000 shares for SuperDOT and 65,000 shares for booth routing.
4. Both securities will now route to competing market centers pursuant to Regulation NMS.
5. BRK A and BRK B will continue to be Auction Market based for execution.
This change will be effective for trading on January 25, 2008
If you have any further questions, please contact your Relationship Manager.
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Auction market based execution?

eusdaiki