specialist goin to the can

Discussion in 'Order Execution' started by OVERtheLINE, Apr 16, 2003.

  1. RichSohn

    RichSohn

    damn...if this guy, OVERtheLINE, trades the way he digests news, he must be down some hefty $$$. obviously quick to jump to conclusions about everything. $600 bux a month for that garbage news source...money well spent, bro!

     
    #21     Apr 16, 2003
  2. I heard the same new as Overtheline. I guess instead of fighting about if it is true or not we can wait a day or so and see if gets reported on more news services.

    Would not surprise me if it was true. They could probably do a swept down on the floor and end up shutting the whole floor down.
     
    #22     Apr 16, 2003
  3. RichSohn

    RichSohn

    Street.com reported that it was a Fleet specialist who was put on administrative leave. I don't know anything about specialists being put in handcuffs.

     
    #23     Apr 16, 2003
  4. To get day traders lousy hopes up?
    RichSohn,
    ESMF
     
    #24     Apr 16, 2003
  5. #25     Apr 16, 2003
  6. this year is the big 50th anniversary!
    after getting bounced from the competition as usuall in the first round , ill have my ice machine cooking....where a girl gets a shot of tequila for cooling her chest down:D
     
    #26     Apr 16, 2003
  7. NYSE Floor Trader Is Placed on Leave

    By Rebecca Byrne
    Staff Reporter
    04/16/2003 06:08 PM EDT
    Click here for more stories by Rebecca Byrne


    A New York Stock Exchange floor specialist who manages the stock trading of General Electric (GE:NYSE - news - commentary - research - analysis) for FleetBoston's trading unit reportedly was placed on administrative leave for mishandling customer orders.

    The trader was removed from the floor on Monday, according to a report in The Wall Street Journal.


    "This is an internal Fleet matter that we're currently handling," said Fleet spokesman James Mahoney, according to the report.

    The New York Stock Exchange declined to comment.

    A trader contacted by TheStreet.com said the specialist was inappropriately paring buy and sell orders. Typically, specialists have to match buy and sell orders and aren't supposed to profit off the trade, the trader said.

    "This specialist was trading for the spread; in other words, he was buying the stock that was for sale and selling the stock that was to buy and making the difference between the two," the trader said. "That's fine as long as the orders can't be pared off, but it seems that he was not acting at all as an auctioneer and whenever possible he was just profiting."
     
    #27     Apr 16, 2003
  8. WinSum

    WinSum

    #28     Apr 16, 2003
  9. Swipe

    Swipe

    Sounds like someone is a little upset over a lime? LOL

    It's my opinion, others that ridicule or try to put another trader down are insecure with their own trading.:D
     
    #29     Apr 16, 2003
  10. Tea

    Tea

    Here is a partial quote from the Financial Times


    Floor trader is removed amid probe by NYSE
    By John Labate, Mary Chung and Vincent Boland
    Published: April 16 2003 23:59 | Last Updated: April 16 2003 23:59


    A floor trader responsible for buying and selling shares in General Electric at the New York Stock Exchange was removed on Wednesday as part of the exchange's investigation into some of its floor brokers' trading practices.

    The trader was identified as David Finnerty, who works for FleetBoston Financial's Fleet Specialists unit. The division is among a handful of firms known as specialists that control the order flow in trading in NYSE-listed stocks. This once-lucrative business has been hit by the bear market and the introduction of decimalisation for stock prices.

    The NYSE investigation is understood to have been launched after complaints by leading institutional investors about the conduct of some floor-based specialists that maintain liquidity in the stocks for which they are responsible.

    The NYSE declined to comment. James Mahoney, a spokesman for FleetBoston Financial, said: "This is an internal Fleet matter which we are currently handling." An internal investigation is under way at Fleet Specialists, spurred by the exchange's own probe.

    The NYSE investigation is understood to centre on the practice of "front-running," whereby a specialist temporarily "freezes" an incoming order from an institutional investor to take a position in the stock ahead of the investor and make a profit.

    Among the issues being investigated is trading orders on the NYSE's "designated order turnaround" (DOT) system, an electronic order execution system used by institutional investors for small orders. Traders said the volume of small orders - usually for fewer than 1,000 shares - was so high that the DOT system was easy to manipulate.

    Each stage of these transactions is timed, providing a crucial audit trail of each transaction. It is understood that possible manipulation of the timing of some transactions is also part of the investigation.

    The probe into possible wrongdoing on its famed trading floor is the latest in a series of setbacks for the NYSE in recent weeks. Its nomination of Sandy Weill, chairman of Citigroup, to its board was attacked by Eliot Spitzer, the New York state attorney-general.



    Earlier this week a securities firm run by Kenneth Langone, another NYSE board member, was charged with unlawfully sharing in customers' profits from initial public offerings.
     
    #30     Apr 16, 2003