NYSE Retail Liquidity Program

Discussion in 'Automated Trading' started by clearinghouse, Oct 5, 2012.

  1. http://traderupdates.nyse.com/2012/07/nyse_and_nyse_mkt_retail_liqui_1.html

    Do you have to basically be a GETCO or a Knight to be putting in price improved orders for retail liquidity? I currently send 0 orders to the NYSE and don't even have a port there, either through a broker or directly. Anyone familiar with this program at all?

    FWIW, I'm a nobody liquidity removing prop trader trading my own money, so I don't ever interact with exchanges. I just want to know whether it's worth firing off a whiny e-mail to my tech provider about how my life is being ruined without access to this liquidity.
  2. jb514


    How come NYSE never has subpenny prints? Are the RLP trades reported differently?
  3. actually the NYSE RLP is making it so more of the retail flow hits the lit public markets instead of going directly to a wholesaler ( getco, knight, IB's TH)


  4. FTA:

    "Under the exchange’s programs, market makers will be allowed to post hidden quotes in sub-penny increments that may only be traded against by qualified retail brokers. The plans’ detractors noted this was a violation of the SEC’s ban on sub-penny quotes, which the regulator has noted could discourage traders from posting limit orders."

    They just say "market makers"; they don't say whether this is just any guy sitting in his basement making a two sided market or whether it's designated market makers who're able to post these quotes. It seems like they're implying it's designated market makers.

    Also, I don't see how their program addresses the SEC's views about wholesaler interception of flow if the flow is just headed to some designated market maker on the NYSE. Have we all forgotten the days of the crooked specialist, his bogus book locking, and suspicious "price improvements" on large block fills? Why do we want that guy being the equivalent of a wholesaler, but on the NYSE instead -- NYSE commission rates are terrible for a Joe Blow retail liquidity remover on a broker like IB. At least the wholesalers are dirt cheap. What is the NYSE RLP solving in terms of flow interception? The only thing I see it solving is the problem of their declining market share.