NYSE Auto-Execution Restriction

Discussion in 'Order Execution' started by BankerBlueChips, Mar 13, 2003.

  1. NYSE Auto-Execution Restriction

    Change may be in store for the NYSE’s Direct+ auto-execution system. The SEC has approved an NYSE rule change that prevents Direct+ executions that occur more than five cents away from the last sale. That means traders might no longer have the ability to auto-execute against far away NYSE bids and offers. The rule change may be in response to traders who use Direct+ to print stock considerably away from the last sale. These trades often mislead investors and cause a less “orderly” market. No word on when the new rule will take effect.
  2. At least in theory, if the specialist publishes a bid and offer, they should be obligated to fill at those prices. Also, games traders play is 0.1% compared to all the specialists' games.
  3. GHJ


    Where did you get this story?