I was on the floor for fifteen years and never saw this process used by anyone. The only other thing I have seen in certain very liquid stocks is that each person gets filled on the same percentage of their order. We must also deal with the reality of the situation. There is even a rule providing for a coin flip for heavens sake. If you think I rememer that or ever thought of using that you are nuts. The reality is everyone usually seels the same amount and "true parity" is rarely enforced, perhaps only when a cross is about to happen to show the orders that were shut out that you did in fact adhere ot the rules.
I must correct you again. You wrongly advised Dan when he wondered how the larger order which showed up on the book after his was filled first. Here is the quote (unaltered of course) to refresh your memory: Quote from jimrockford: NYSE rules sometimes give priority to a larger size order, over a smaller size order at the same price, even though the smaller size order arrived first. I suspect this is what happened to Dan (dwl603).
Rockford, In the very rule and example that you cited, the first 100 shares(a) has time priority over the lots on parity. This clearly shows you were wrong. Will you finally lay this to rest?
http://en.wikipedia.org/wiki/Confirmation_bias Excerpt from this page: "Confirmation bias is a type of statistical bias describing the tendency to search for or interpret information in a way that confirms one's preconceptions. In inductive inference, confirmation bias is a type of cognitive bias toward confirmation of the hypothesis under study. To compensate for this observed human tendency, the scientific method is constructed so that we must try to disprove our hypotheses. " We see what we wish to see. There is a logical explanation, to be sure. You will find it with careful study of NYSE rules and microstructure. The specialist can participate, but not initiate. segv
Excellent and very timely post! Rockford, for the past 30 pages, has been deluding himself due to cognitive bias. (Be forwarned though, Rockford, in the keeping with his conspiracy theory spirit is likely to accuse us of being the same person)
All readers please be advised that Hamlet is not only making false statements about me and as to what I have said, he is also making false statements about NYSE rules. I, or perhaps cstu, will try to give specific explanations to anyone else who asks, but in the absence of anybody else's questions, I will not waste time specifically denying Hamlet's statements.
I am happy to clear up any perceived false statements or errors on my part, if they are presented by Rockford or anyone else. I cannot, of course, answer to a generalized accusation, since I have no idea to what he is referring.
Very, very interesting and educational, cstu. This particular answer shows that NYSE rules are of limited value in understanding how the process really works. Parts of the process are actually governed by customs and traditions contrary to the rules. Thanks again. I'll have another question for you soon.
Quote from jimrockford: NYSE rules sometimes give priority to a larger size order, over a smaller size order at the same price, even though the smaller size order arrived first. I suspect this is what happened to Dan (dwl603). Is it this unaltered quote which is false? What is it that is bothering you? This was your response to Dan who was talking about an order on the book getting filled ahead of his even, though his was first. Where is the false statement? You are trying to twist the truth.