Liquidity quote postponed

Discussion in 'Trading' started by C Robinson, May 23, 2003.

  1. from http://www.traderbulletin.com/

    Liquidity Quote Postponed
    The SEC has stopped the launch of the NYSE’s new Liquidity Quote stating that it is “troubled by the potential anti-competitive impact of the NYSE's actions.” The stay resulted from Bloomberg’s objections over burdensome restrictions in the NYSE’s data vendor agreements. In the SEC’s April approval of Liquidity Quote, the Commission demanded that the NYSE remove prohibitions on commingling Liquidity Quote data with that of other markets. The NYSE responded by re-writing its contracts. Now, Bloomberg is claiming that the NYSE has added a variety of onerous clauses to get around the SEC’s ruling, including requirements that footnotes are placed in montage windows to indicate that liquidity quote data is being used, that windows indicate the number of shares attributable to liquidity quote data, and that firms obtain the NYSE’s prior approval any time a window that uses Liquidity Quote data is created or changed—no matter how "trivial" the change. Bloomberg says the net result is that traders will be left with less understandable screens, and software innovation will be impeded. The rollout of Liquidity Quote will be delayed until at least June 6, 2003, while the SEC evaluates the NYSE’s response.