Observations on the NYSE specialist.

Discussion in 'Order Execution' started by oliver777, Feb 14, 2006.

  1. I observed something today that confirmed my beliefs on how the specialist outright block traders from getting into stocks that are prepared to make a move.
    While viewing the NYSE Open Book, the specialist routinely shows 1 (100 shares) on the size for the ask and then prints 30-40 cents up, I observed this 6 times today from 10-11am, I'm sure it happened more, but that's how many stocks I can look at the same time.
    I was also observing several tech stocks on the Nasdaq and noticed no such thing, allowing traders to enter (although it was a fast moving market, the opportunity was still there to enter.

    I can't wait till the specialist are gone from their role in the NYSE and make for a fairer playing field, hopefully this will happen when the Arch merger goes through.
  2. kurlabr


    Don't get your hopes up, the specialist will still be the main traffic cop. Those trade throughs will still occur under the new system, their will just be some guaranteed liquidity at certain levels. Same thing as he does now, IMO.
  3. alanm


    What stock? Exactly when? Were the prints coming from the ECNs or the NYSE? It's unusual for the spec to print 30 cents through his own quote - he usually gaps it up first. Why is this necessarily anything sinister, anyway? If a guy walks into the pit and says "gimme 100K" (or sends a big market order via DOT), what is supposed to happen? A fill at the 1000-share offer price and no movement?

    This stuff is a lot more instructive with T&S.

    Specs do bad things sometimes, but nowhere near as often as people claim. There seems to be this idea that you're somehow supposed to be able to buy exactly as much stock exactly when you want and there's supposed to be someone dumb there to sell it to you, even if there's sudden news on the stock, a sudden flow of buy orders (like when it breaks through resistance and everyone in the world sees it), etc.

    None of this may be the case here, but this looks just like every other "evil specialist" post.

    Sorry about any perceived hostility. I'm cranky.
  4. dont mean to sound the same way cause everytime I say this too myself I feel like an a****** but got take a look at Ford lately if you get the picture perfect situation there is no way in hell you are getting those shares, I have seen the specialist on that stock eat 3 times what is on the level without giving away a single share I can not wait until these crooks get put out of business, some of these guys are flat out thieves.

  5. this is my third day of observing, tick by tick how shares are not available when stocks surge.

    Ford was mentioned earlier, unfortunately it isn't one that I follow, but will put it on my list.

    I'm not bashing the specialist, I am making a clear observation, and if its outright crookery, why is it wrong to point it out.

    The difference betweenNYSE and Nasdaq stocks is almost night and day for those trying to scalp, Nasdaq (not the small illiquid) has a nice flow with multiple market makers, and the NYSE has one greedy specialist who closes the market out and prints up 30-40 cents.

    Lets hope this arch merger makes for a fairer playing field, otherwise I will not trade NYSE stocks.
  6. The NYSE won't miss you!

    Kind regards,

  7. Emm,

    The reason why stocks go up is when there is no supply ,

    so obviously when the stock is going up you can not get shares easily or there will be little shares to be gotten because,

    there is no supply which means its going up

    Wouldn't be right if you can buy 20,000 shares available at your price and the price still goes up?

    Whats going on with the 20,000 shares? who's buying them?
  8. for those scalping te NYSE is not a great place, sure if your carrying positions overnight or swing trading, ticks won't mean much.
    Maybe I should have renamed this post, specifically for scalping traders. If you don't scalp its hard to understand why your blocked out when a stock has a run up. This doesn't happen on the Nasdaq, even if there is huge demand, the point is the specialist won't let you get a piece without overpaying, and the Nasdaq has multiple market makers, making for a fairer playing field.

    hope that clarifies
  9. oliver go trade goog or apple or brcm. by the time you press the button in 1/10th of a second you ahve 4 cent slippage in apple and 40 cent spreads on goog. no question nyse fills are much slower on gaps but naz is whicked also and they whipsaw you to death
  10. Joey,

    goog, aapl, are extremes, try X (US Steel) on the NYSE for volatility.
    Nasdaq is a much better playing field for scalpers, NYSE revolves around a greedy specialist (maybe not all, I've seen some decent stocks that refresh very quickly and don't have hidden orders (don't show up on the NYSE Open Book, ex ASH and VLO, great specialist),

    take a look at some of the metals, such as X for extreme swings. and hidden orders. If that doesn't say manipulating, I don't know what does.
    #10     Feb 15, 2006