Nyse Direct

Discussion in 'Order Execution' started by TickerWatcher, Jun 5, 2002.

  1. I wanted to get some opinions on NYSE Direct or also called NX.

    I don't think it all that it was touted to be.

    What do you think?
  2. c. sometimes I get filled at the offer when I'm buying, or at the bid when I'm selling.

    If he fills me for 100 and then goes 100 shares bid (or offer) nx orders automatically go <i>guess where</i>? To the book. In some ways, nothing has changed.

    Alot of times the other guy gets there first, and you're stuck with a market running away. Happened several times to me today. I don't know if there is any software out there that can increase your edge -- I don't think developers take nx seriously enough (for good reason).

    I'ts a step in the right direction, but like everything else the NYSE does, it has such ambiguous rules governing it's implementation that it's benefit is curtailed. Like all other NYSE tools, the specialist has the edge with this one, too.
  3. Having said that, it's existence is one more little arrow to put in your quiver.
  4. Bryan Roberts

    Bryan Roberts Guest

    i use it all the time now and i couldn't imagine trading without it!!! i read on some previous post (on this topic) that the specialist really hate it.....in my world that is a good thing!!!!
  5. just wait until they have to acknowledge ARCA trades. But in my experience, NX is not all it can be owing to the monopoly the NYSE has. You still can't electronically cancel an order, the specialist still has his waiting period during which he can do whatever he pleases with your order...we have a long way to go.
  6. its less than crumbs on the table...

    it annoys specialists but it is pocket change to them
  7. Bryan Roberts

    Bryan Roberts Guest

    chasinfla, i am in full agreement with your comments. "direct plus" is not the holy grail, but yesterday when we had that 10:00 spike i used "nx" to buy adi and got 500sh's on 1000 before the specialist could yank the offer!!! i wouldn't have got squat if i had used a regular order. i wish it had an immediate fill and/or kill feature or "electronic" cancellation but i'm not holding my breath.

  8. You have experienced one of the small triumphs of NX. It's a long long way from being an ecn.

    I thought this would interest you and other NYSE traders:

    When ARCA is fully operational in the next month or two, orders there cannot be traded through by the NYSE without significant penalty. Of more importance is the ability for folks like you to cancel and replace orders at will. The NYSE prohibits electronic entry and cancel of orders for a reason -- it allows a free "time" option.

    Electronic venues remove that free option and you can cancel if the market changes. ARCA will also allow numerous different order types, like the ability to display only a portion of an order with a much larger "reserve" sized order behind. It keeps professionals from "leaning" on your limit order. </i>
  9. Bryan Roberts

    Bryan Roberts Guest

    hey thanks for the info...i'm all for any type of improvement. i'm guessing the volume on arca will be quite low at the beginning???
  10. This info comes from a large institutional backer. There is institutional presence on ARCA.
    #10     Jun 6, 2002