Discussion in 'Trading' started by suspend, Jan 26, 2006.

  1. suspend


    Could you help me understand the differences between the market auctions at LSE and NYSE?
    Right now I am trading at LSE but I would like to switch to the US market (NYSE) and I heard that there is a difference in how the market auctions are organized. I would be very greatful if you could help me with that.
  2. Willow


    The difference between LSE and NYSE is big I think.
    I have never traded LSE I sow a book only.
    But I can tell you something about NYSE.
    - you trade cents, not quarters.
    - there are a specialist
    - you can use ECN-s too what give you many chance to have a position
    - the sizes are quite small (some hundreds in book, but this is depends on the share)
    - there are active and non active stocks, there a stocks hold sizes and some which moves big...

    Hope I could help!
  3. Mattybuoy


    They are completely different markets in the way they work.

    "Auctions" at the LSE are special events that mainly take place before opening and after closing. Otherwise, it is either order-book or market-maker driven, depending mostly on the market cap of the stock in question.

    Whereas the NYSE is, in theory, a totally "auction-driven" market. The idea being that the public meets the public most of the time, with the specialist "filling in the gaps" when liquidity is lacking. That's an over-simplification though.

    The NASDAQ is similar to the way the LSE works, only it does it all much better.

    It might help if you clarified your question a bit ...
  4. Mattybuoy


    As an aside, and with respect to what I thought this thread would be about before I looked ... ;)

    I think that it will be the NYSE that ends up merging with or taking over the LSE. From a structural viewpoint NASDAQ would be more logical but these cross-border exchange deals are rarely about practicalities.

    NYSE->LSE->TSE is the game IMHO.
  5. Suspend, I am an NYSE Trader who will be starting to trade the LSE in the coming weeks and I am having trouble finding a FTSE symbol (ie. S&P 500 is ESH6) that works . I have tried several but with no success, what do you use if you don't mind my asking? Thx.

    NYSE :
    1. Specialist (on NYSE floor) keeps everything moving and organized...and too many times seems to be trying to screw you over.

    2. Several ECN's...Island, Arca, Brut Etc. (other avenues to enter or get out of positions)

    3. Trades on the full penny as opposed to fractions of a penny
  6. suspend


    Trade Bot³, here are several FTSE symbols that you may find useful:

    .UB04 - FTSE 350 Index - Mining
    .UB07 - FTSE 350 Index - Oil & Gas Pro
    .UB11 - FTSE 350 Index - Chemicals
    .UB13 - FTSE 350 Index - Construction
    .UB18 - FTSE 350 Index - Industrial Me.
    .UB21 - FTSE 350 Index - Aerospace & D
    .UB24 - FTSE 350 Index - General Industry
    .UB25 - FTSE 350 Index - Electronic
    .UB26 - FTSE 350 Index - Industrial En.
    .UB31 - FTSE 350 Index - Automobiles &
    .UB41 - FTSE 350 Index - Beverages
    .UB43 - FTSE 350 Index - Food Producer
    .UB44 - FTSE 350 Index - Health Care E.
    .UB47 - FTSE 350 Index - Personal Goods
    .UB48 - FTSE 350 Index - Pharmaceutical
    .UB49 - FTSE 350 Index - Tobacco
    .UB52 - FTSE 350 Index - General Retail
    .UB53 - FTSE 350 Index - Travel & Leis
    .UB54 - FTSE 350 Index - Media
    .UB58 - FTSE 350 Index - Support Services
    .UB59 - FTSE 350 Index - Industrial Tr.
    .UB63 - FTSE 350 Index - Food & Drug R.
    .UB72 - FTSE 350 Index - Electricity
    .UB77 - FTSE 350 Index - Gas Water & M.
    .UB81 - FTSE 350 Index - Banks
    .UB83 - FTSE 350 Index - Nonlife Insurance
    .UB84 - FTSE 350 Index - Life Insurance
    .UB85 - FTSE 350 Index - Equity Invest
    .UB86 - FTSE 350 Index - Real Estate
    .UB87 - FTSE 350 Index - General Finance
    .UB93 - FTSE 350 Index - Technology Ha.
    .UB97 - FTSE 350 Index - Software

    .FTSE - FTSE 100
    .FTMC - FTSE Mid 250
    .FTT1X - FTSE techMARK 100 Index

    Everybody, thanks a lot for the info about the NYSE. What I was mostly interested in was how the market auctions are organized. Meaning that auctions at the LSE last 5-10 mins. and during that time you have the present uncrossing price and therefore some idea at what price you might get filled. I watched how the trading at the NYSE was going for a few days and couldn’t understand why is this long pre- and after- market auction period and what’s most important - how it works. I also couldn’t find the uncrossing price anywhere. I would be very grateful if you could clarify this for me.
  7. Willow


    At pre- and after market you can trade only on ECNs, but the NYB will be there as crossmarket till open. But if you send order to the specialist, it won't be fill til 9.30. After the bell when the market opens, the specialist start doing his job too... The lot of NYB disappear and you can see NYSE (the specialist) in the book too.

    The hardest thing - I think - is recognizing what the market wants... if the price goes up or down... But If the market change it's mind you must be fast!
  8. suspend


    Thanks a lot. That was really helpful. Does this mean that I can actually buy the stock during the pre-market auction?
  9. You can get into pre-market or after-market action with an ECN with NYSE or NASDAQ. I would avoid doing it because it is very risky.

  10. if u are clearing through IB the symblol is 'Z'.
    #10     Jan 27, 2006