nyse hybrid system

Discussion in 'Trading' started by slickshal, Oct 28, 2006.

  1. whats the overall attitude about the hybrid system and what what kind of impact will it have on the prop. trader?

    i just left the floor of the nyse. i was a clerk for many years. the way people feel down there, especially floor brokers and clerks is there days are numbered.
    maybe 1 or 2 years at the most. a lot of lay-offs are happening as we speak... me being an example.
    specialist firms are doing the same.. labranche just laid off 18 employees... 7 specialists and the rest clerks..

    my take is its going to make it harder to tell whats going on in the crowd.
    u see the way it works is... u have the open book which is the public orders.. and it'll be the only quote you will see... and the you'll have a broker quote, which represents the floor broker amount he's looking to trade.. its called the replishment amount. and then the specialist column... if he has a position he wants to trade, he must publish it here.

    now the floor broker can publish on the open book or the broker quote but you will only see his open book amount.
    so a example would be if a floor broker offers stock at the fig and u see all the stock trading at the fig.. there could be a broker replishment amount quoted at the fig still and that would trade if there's still a buy interest coming in. basically , the only way the floor broker can get involved on the print is if he posted stock on the broker column... in other words, he must reveal his had or risk missing out on prints. the most important aspect is.. this is happening w/o the specialists' control.

    the specialists job would still be the same when there is a one sided situation.. and he needs to step in the accomadate an order, usually at a discount to him. but if he wants to trade his position( mind you.. this is the most important thing on his mind..his p&l, not the public orders.. always has been always will) he must publish...
    this can get somewhat complicated.. i hope i wasnt talking in circles... bye for now
  2. am sorry but the sooner the specialist and his clerck are gone the better for all of us that trade pure direction. the hybrid seem to be designed to favor the specialist proprietary tradin' as never before.

  3. Hi Bit' ... et Al...

    I read this from beginning to end and although it is quite redundant it is eye opening...

    i am going to keep posting this on ET until it is properly replied too... or an ET member can refute it intelligently...

    it was formely named nyse some number etc.. but i gave it a more accurate name


  4. i will have to agree w/ you... when u have every broker, trader, fund manager publishing there stock for sale... who's gonna have the most intimate knowledge of it all??
    dont forget who put all that money in grasso's pocket..they were always a driving force during the illustrious history of the nyse.. i personally think they have a huge majority stake in evrything happening right now
  5. From pdf:

    > Conclusion

    > It is not the Commission's task to
    > ensure NYSE ** specialist
    > profitability levels ** by maximising
    > their proprietary trading
    > opportunities.

    > It is the Commission's task to enforce
    > applicable law strictly, to put the
    > interests of public investors ahead of
    > dealer interests, to maximise public
    > order interaction without dealer
    > intervention, and to create as "level"
    > a competitive playing field as
    > possible.

    > It really is that simple.

    > Sincerely yours,

    > George Rutherfurd
    > Consultant (to two institutional trading organisations) Chicago, IL

    I don't have to read a 22 page document to know...
    That the "hybrid" Game is ONLY about maintaining NYSE/Specialist "profitability levels"...
    To which they feel ENTITLED.

    It will not work.
    The Game has spun out of the NYSE's control.
    The Specialist system is dead.
    Anybody leeching off this racket is living on borrowed time.

    There is no "intelligent answer" to supporters of Criminal Rackets.
    It's a Law Enforcement matter.
    Until the Top 100 NYSE and Specialist Firm executives face serious criminal charges...
    Constant, creative attempts at circumventing the law will continue.
  6. yeah but its fuckin' amazin' that the sec can not only take seriously the new nyse proposal but enforce new rules that screw the avg investors and destroy old rules that have guaranteed some basic protection and transparency for decades.
  7. IMO the NYSE going public was the worst thing that could happen. The specialist will be replaced by software, so there will be no benefit to traders. As a matter of fact, I saw a job ad that a specialist firm posted, seeking a Ph.D. programmer. The specifics were quite eye opening. They are looking to trade large blocks in 100 lots (like the Nasdaq) and have little impact on price. I think scalpers are in for a rough time under hybrid. I believe hybrid is being designed to flush out the professional trader.
  8. Personally I have stopped day trading NYSE stocks...and will not trade them until they change to a full electronic exchange...

    The nasdaq best suits my style of day trading...I like instant fills...

    When the NYSE can truly offer this, I will trade NYSE stocks..

    Not only is this meaningful to daytraders...this is meaningful to the larger position traders which really are responsible for political suasion vs NYSE...ie Calpers etc...

    This is really ironic, because ARCA is largely responsible for electronic trading, but now that they have melded into the NYSE...they have changed their tune...

    One thing for sure is...the nasdaq will gain in market share as long as they have this nonsense in place....

    The overseas exchanges such as Euronext or Tokyo may find some comfort in protecting self appointed margins as is present in the hybrid...however at the end of the day...the most efficient and fastest exchange is going to win the game...

    The Hybrid will fail....but buys some time for those working at the exchange...
  9. As a pure, computerized Quant... I am growing inceasingly optimistic.

    My firm is successfully adapting to increasing market fragmentation (so far)...
    And our volume and profits have been rising the last 6 months.

    I think the NYSE floor will be gone sooner than anyone is predicting.

    The Hybrid Con will fizzle...
    The corrupt Specialist System will join the Soviet Union on the scrap-heap of history...
    And pure electronic markets will be Nirvana for Quants.
  10. Yeah, it's great for hedgefunds. But for the pure discretionary trader, it's horrible.
    #10     Oct 28, 2006