NYSE Hybrid - June est.

Discussion in 'Order Execution' started by qazmax, Nov 15, 2005.

  1. qazmax


    The NYSE Hybrid is supposed to be launched in June 06, if the SEC approves everything... Sounds like it will be a nice improvement on the old system.

  2. Full auto-ex is long overdue at the NYSE. A lot of people won't trade listed names simply because of the slowness and specialist intervention. (Not including the daytraders that utilize a strategy of "being on the same side" as the specialist).

    One little annoyance for momentum traders, though, may be the LRQs (Liquidity Replenishment Points) -- http://www.nyse.com/glossary/1128335997215.html -- which turn off auto-ex in big moves. It's comical how the NYSE thinks a single specialists can find market equilibrium more quickly and efficiently than thousands of traders with computers and ECNs (a la Nasdaq).
  3. Screw that, the system is fine the way it is...obviously my vote doesnt count though :D
  4. whose kidding who, since the cocksuckers took over nasdaq with the programs its become a sad place of no volatility.
    Wait til the kickbacks stop from the ecn's, then maybe itl be worth
  5. Term


    I was actually looking at starting a thread about tthis yesterday.

    Steve, I'm with you on the vote there.

    A question I have is that on the NYSE website it says:

    "Some stocks with deep natural liquidity will have a highly electronic profile, while others will have a more equal blend of auction and automated representation. Still others will continue to depend on a significant auction component to minimize volatility. The NYSE also anticipates that the Trading Floor’s capital and judgment will continue to be important across all stocks, particularly in situations such as order imbalances, news events and market openings and closings."

    So by this statement, will something like LU be fullly automated, whereas something like AHC be blended, and a really thin stock still be auction?

    Also, is there going to be an indication when LRP's are trigger and it enters into auction mode?
  6. LOL unfortunately the computers are gonna take over the shorter time frames. If it's mechanical, like most scalping is, the black box will be doing it instead of you.

    Think of it from a business standpoint of the major IB players (particularly Goldman) and even the standard prop firms. What is more efficient, cheaper and easier to maintain? A human being or a black box. What is faster and more consistent?

    Besides the big players want the NYSE's created innefficiency/racket for themselves.
  7. Term


    Hydro, wasn't it you that said the hybrid is the response to reg nms, or are I mistaken? If so, can you explain what you ment by that?

    How will reg nms work with hybrid when a stock goes into auction mode and the specialist is indicating - so your order would get routed there but he doesn't print you and then drops more? You won't be able to cross him down because of reg nms - correct?
  8. Term