NYSE 2 minutes window for specialist rule

Discussion in 'Order Execution' started by alert, Nov 4, 2005.

  1. alert


    Can someone please explain the NYSE 2 minutes window for specialist rule.

    Does this mean that the specialist has 2 minutes before deciding to fill you order or not? Does this apply to limit or market order?

  2. Market orders should be filled in 2 minutes or less.
  3. mnx


    what about limits? and what if they don't fill you within 2 minutes on market? I think I've waited over 5 minutes b4...

  4. Limits are another story altogether, but if your market doesnt fill in 2 minutes, you should call it in. I have done this before and have gotten price improvement. I also work at a firm where I can call our ROP and he takes care of it, not too sure what you'd do if you trade from your home.

  5. mnx


    interesting. are there any rules for the timely fills on liit orders? what if they are guarenteed to be filled (eg. limit sells @ .01 etc...)


  6. alanm


    Market and marketable limit should be the same in this regard.

    There are unusual circumstances, like when there is a severe imbalance because of news, where you may not see an NYSE print for minutes, and the rule does not apply. If he's printing, though, and there's nothing much going on, your order got lost and you should call your broker.
  7. mnx


    sometimes when I'm trading illiquid stocks the specialist won't print at all for over 5 minutes.... My limit orders are crossing the NBBO and he won't do anything.

    If there's shares available he should match them and if there isn't the quotes should update. It seems I'm the only one who has live orders...

    What is happening in these circumstances, and is there anything I can do to avoid it?

    It's probably the nost annoying thing about the NYSE that I run into on a regular basis...

  8. OK, this is where some of the confusion comes in to play. In 2 minutes they should either "fill" or "quote" your limit order. If they take longer, it's generally because they are going to give you a better price.

    Goldman will go to the Post to speak to the Specialist if there is a minute delay (they'll actually call if there is a 1 minute display).

    Fill or reflect within 2 minutes is how I've always understood it.

  9. the two minute rule is the house edge.
  10. my vote for best answer.
    #10     Nov 8, 2005