HYBRID, good news.

Discussion in 'Trading' started by Don Bright, Sep 14, 2006.

  1. Well, well, well. Bob and I received a follow call from our friends at NYSE/ARCA. They flew out here to tell us all the "bad" news about some changes coming on board with the Hybrid system which starts October 6. Basically, no price improvement intra day. This means that none of our traders would "park" orders on the NYSE any longer (why would we, if they can walk the book right over us?). We explained that liquidity for both NYSE and ARCA would basically be eliminated. At that time, no ECN's paid for providing liquidity on NYSE listed stocks.

    We kept hammering them about this...and got a call today. ARCA side revamped their procedures and will start paying for providing liqudity starting October 1st.

    So, now we "park" on ARCA, and "take" on the NYSE (since ARCA will be charging to take liquidity).

    Yea...this means an awful lot to our traders!!

  2. what will the ARCA liquidity rebates be for NYSE stocks?
  3. I never rested limits on arca. Anyone know if Arca orders become "billable" after a period of time like on SDOT? Like, most firms cancel-replace SDOT limits to avoid the fee. I know this may be a little unclear. I never read much on arca fees since I mainly use them for inconspicuous orders at the inside and quick covering.
  4. reg



    Will implementation of the Hybrid system have any effect at all as to how the specialist opens a stock? Will OO orders be affected by this?
    Date of Notice: September 14, 2006
    Subject: NYSE Arca NYSE - Listed (Tape A) Pricing Change

    Effective October 1, 2006, NYSE Arca will implement a new fee schedule for NYSE Arca Listed Tape A equities (excluding ETFs):

    $0.002 per share credit for orders residing in the NYSE Arca Book that execute against inbound marketable orders

    $0.003 per share charge for orders that take liquidity from the NYSE Arca Book

    $0.001 per share charge for orders routed outside the NYSE Arca Book

    The new fee schedule is pending SEC Approval. For additional information, please contact your NYSE Arca Sales Representative.

    ├é┬ęCopyright 2006 NYSE Arca.

  6. The openings are remaining the same (for now)...thank goodness!

  7. one word---- fragmentation-----
  8. If you mean what I think you mean, it ties in with our comments to the 2 gentleman who flew out here (and just called us). One from NYSE, one from ARCA. I said "Hmm, it seems like the big merger is still not fully merged....seems like 2 entities at this point in time". Anyway, glad to have some positive rule changes.

  9. Don,
    yes thats exactly what i was thinking

    lemme ask you this though, will the benefits of capturing .002
    be worth the influx of blackbox rebate trading, furthur reducing transparancy, volatility and trends?
  10. It will definitely help our automated guys who need be paid for "getting in" a trade (either by price improvement or this fee). And, to be honest, the rest is a "wait and see" at this point.

    This little bit will amount to $thousands each month for hundreds of my traders.

    We'll see..

    #10     Sep 14, 2006