Theres no such thing as nor will it ever be "perfect" markets, but we should all have fair transparent markets with price time priority without someone trying their best to fok up normal trades. Edit: They usually give up if you amend your order > 42 times pr minute
They have a choice, based on their own trading style. A. standard rate plus/minus liquidity or B. Mixed rate, so they don't have to be concerned about rebates. This is all subject to change based on what we see on the NYSE over the next few months. But, yes, the traders get a flow through. Don
So if many of the trades will go electronic and no price improvement whats the purpose of trading nyse?i noticed the other day trading vlo and it reversed on me and tanked i threw in limit nyse and market arca. they filled me 24 cent under on arca and nyse held for 15 cent down. so is price improvement gone for good?
Price improvement of specialists is predicated on the fact of the specialist having the "block" of stock with which to take the opposite position against. His capital + guys in prop shops with standing orders like the Brights/Echos butt up against these blocks at a good price usually just above a big block of buy order which acts as a stop. With the new rules, that block is distributed by the algos and OMS systems in drips/drabs and as such few if any blocks exists for the spec to play against. MSchey is dead on.. we will all be wishing for the good ol days when spec in its curent form goes away.
I didn't have to adjust to penny increments, it's all I ever knew. I came in just after they implemented penny's. So I just observed, learned, and created a plan/strategy for execution. How will I adapt to the new market structure. I will observe how the market trades, and then I will look at how many of the stocks I trade actually trade over a few days, then I will come up with a plan for determining when I want to buy and when I want to sell and the best way to do this. I'm not looking forward to this, and I think the public is going to get fleeced for the next few months until reg nms goes into effect. I imagine that two of my programs will continue to work, one will no longer work, and one might have to be revised a little. Hope for the best, plan for the worst is my philosophy here.