NYOB Worthless?

Discussion in 'Order Execution' started by comfut, Mar 20, 2006.

  1. comfut

    comfut

    I have been noticing for the past few months that the NYOB is not displaying many of the specialists bids & asks ie:

    Trading CVX today:

    NYOB reads 56.98 700 57.01 1000

    The quotes screen is reading:

    57.00 57.01 20 x 10

    Any thoughts would be appreciated.

    Thx
     
  2. Maybe CVX is just to fast as the nyob is delayed so it never matches that specs displayed quote.

    Also, maybe there was lots of broker interest which was not diplayed on the book.
     
  3. comfut

    comfut

    "Maybe CVX is just to fast as the nyob is delayed so it never matches that specs displayed quote.

    Also, maybe there was lots of broker interest which was not diplayed on the book."

    Thanks for the response. I don't think it was a delay problem as larger orders just sat on the quote screen, but never made it to the book.

    I'm just wondering if the NYOB is a pain for some specialists and they do their best to ignore it for as long as possible.
     
  4. Sharko

    Sharko

    This type of thing has been happening for a while. The specialist won't show you what he has. Big orders will appear on one side of the level 2 and will get printed even though he's not showing anything on the other side. Apparently he doesn't have to show you what he has. The level 2 is worthless, but I still wouldn't want to trade without it.
    sharko
     
  5. like the way you said it

    nyob .98x.01, 7x10
    level 1 .00x.01, 20x10

    which looks like someone on ecn was showing better bid at 57.00 for 20

    my old platform allowed me to get NYSE only feed. my level 1 quote reflected the nyse only level 1(not necessarily the top layer of nyob)

    if im looking at regular level 1(nyse + ecn) combined, your situation happens very often. i dont see there's anything special going on there.

    i like the nyse only feed, because that's where you can do some amount of tape reading. when level 1 is mixed w/ecn, it wouldnt mean much when i read the NYSE only prints.

     
  6. The specialist is bidding the figure with 2k shares, either he is working it for himself or someone on the floor.


     
  7. comfut

    comfut

    Thanks Steve,

    That makes sense.
     
  8. in my fifteen years of trading, i have come to the conclusion that the NYOB is worthless, not only worthless but deceiving.
    Why would someone want to advertise what they plan on doing?
    It doesn't make sense and hence the reason it doesn't work. It's a tool for small investors to get screwed, how many times do you see big size on the bid, only to get wiped out, more often than I can recall.
    This is all due to the greedy manipulative specialist that runs the NYOB, besides there are two books that you and me aren't entitled to, the other book is for large institutional sizes and is kept secret from retail clients. Wonder why anyone would pay to use a partial service with partial info (not to mention the lag time (five seconds), on refreshing the NYOB.
    I have and always will do better trades ignoring the NYOB and concentrating on the prints as price action never lies an execution is real (NYOB is false advertisement).

    best,
    Oliver
     
  9. comfut

    comfut

    Oliver,

    I'm leaning your way.

    Great points.
     
  10. Comfut, glad to hear your seeing through the bad advertisement on the NYOB.

    best,
    Oliver
     
    #10     Mar 21, 2006