Perpetual NYSE Specialist Abuse

Discussion in 'Professional Trading' started by hayman, Aug 20, 2003.

  1. DaveN

    DaveN

    uptik2000,

    This sounds *very* familiar. I see this several times a day, as I also trade the liquid NYSE stocks. I have noticed that this occurs mostly when I'm sending an order in response to something I see in the tape, rather than when I've been sitting in the book with an SSH order. So, I'd guess that orders ahead is correct, especially in these bigger stocks.

    If you were sitting in the book previous to those trades, for say 1 minute or two, then you should have been filled on that first print through your price. Based on your description, I'm guessing that your experience parallels mine, where you've sent an order into the moving market rather than having it hit a sitting one.

    If I'm providing liquidity and sitting in the book, I will see my execution before I'll see the fast ticker adjust or the NY Open Book indicate much change. (Yes, that is on a 10 second delay, but the Liquidity Quote is not....). So when I'm sending an order, especially a short order, having a very low priority, I always assume that many others have beat me to it. Sometimes it's two or three prints before I'm in, just like you described.

    However, on straight Sells or Buys, this doesn't seem to happen, unless I'm really late to the party.... On those, I assume that I got my order in, and it has higher priority than a short order.

    At any rate, I did want to tell you that, yes, I've seen this too.
     
    #31     Aug 23, 2003
  2. nitro

    nitro

    :D

    nitro
     
    #32     Aug 23, 2003

  3. No need to thank me. Thanx for the liquidity.
     
    #33     Aug 23, 2003
  4. If you aren't getting price improvements ....


    well you aren't offering liquidity to the market by having orders sitting in the market.

    If a stock is trading at 35.50 and you are long 2000 shares at 35.06

    If you were to offer some out at 35.65
    35.73

    and 35.83

    well suppose the specialist gets a huge order to buy.

    He prints 35.75 for the entire order and if your orders were sitting in the market for over a minute.

    Instead of getting filled at 35.65 and than 35.73 You get filled at 35.75

    Happens all the time.

    Try that on an ECN :)

    Put your orders out...........than you can get price improvement.

    If you put them in when all of a sudden the specialist shows 35.75 as his offer. Well you are under the 2 minute rule and he doesn't have to fill you.

     
    #34     Aug 23, 2003
  5. love it when that happens.i got 36 cents improvement on one trade this week.
     
    #35     Aug 23, 2003