SpecialistMan - by John Bogle

Discussion in 'Order Execution' started by Tea, Sep 19, 2003.

  1. DaveN

    DaveN

    ARCA has a built in smart routing logic. So, if you send a marketable order to ARCA, it will "shop" the available prices to get you a better fill. That means your order can get sent pretty much anywhere, like NYSE. It's in this case, the specialist gets control and can hold your order while his book is frozen.
     
    #31     Sep 23, 2003
  2. Nordic

    Nordic

    Plus it gets routed over ITS which is extremely slow
     
    #32     Sep 23, 2003
  3. thanks for the info Dave...i knew the order could be held but i didn't know why.
     
    #33     Sep 23, 2003
  4. alanm

    alanm

    This is only true if you allow the order to go proactive. Some platforms give you the ability to set this flag (I think it's called PNP), and others (like IB), never allow ARCA to go proactive.

    I imagine the same thing would happen with pro-active INCA orders that go to NYSE (via ITS).
     
    #34     Sep 23, 2003
  5. Tea

    Tea

  6. "The NYSE has steadfastly maintained its own version of open outcry trading, with 1366 members engaged in face-to-face share dealing every day. Such floor trading was abandoned in Australia in October 1990."


    "Mr LaBranche added that Dick Grasso, the ousted chief executive of the exchange, was opposed to increasing electronic trading."


    so we are only 13 years behind australia....i'm sure Elmer Fudd had his reasons.....140 million reasons.... i hear that he can collect another 50 something million if he can prove he was forced to resign. this is on top of the 48 million that he supposedly turned down.
     
    #36     Sep 24, 2003
  7. Tea

    Tea

    If there was ever a time to have changes made at the NYSE - now is the time. The protection for the specialists, Dick Grasso, has been eliminated. The NYSE board, which is made up of prominent people who thought they were taking a prestigious position, have been made fools of and have had their reputations damaged. They are ripe for revenge on the NYSE system and there is nothing the members can do.

    SEC chief, Donaldson, who is an apologist for the archaic open outcry system has been embarrassed and seems open to suggestion. Even Larry Kudlow of the CNBC Kudlow & Cramer show is starting to seem embarrassed. He is against protectionist measures like the steel tariffs for blue collar workers. But he is all for protectionist measures that protect the unwanted NYSE open outcry system that enriches his friends who are specialists. A bit hypocritical is you ask me.

    The specialists are slowly twisting in the wind. Now is the time to strike while the iron is hot. An individual investor can write a letter to his/her congressman and copy the SEC.

    Hedge funds can hire a lobbyist and get to work. Larger firms should already have lobbyists and should get to work eliminating this open outcry travesty and getting listed stock trading in the modern age like Nasdaq.
     
    #37     Sep 24, 2003
  8. i have seen other traders pick me off for 5 cents or more on many occasions when priceimprovement on the nyse leaves me hanging at the high bid on the regionals ( etrade doesnt route to the nyse except when ur giving up the spread)
     
    #38     Sep 24, 2003
  9. hayman

    hayman

    I trade thin liquidity NYSE issues, and the price improvement "algorithm" is running rampant these days. More than I have ever seen, and more than what the NYSE website claims (on the order of 40 % or so).

    This so-called "price improvement" that NYSE allows for, provides
    for penny (or more) improvements for those who are already willing to pay the "market" price for a stock, and causes "price
    disimprovement" for those that are posting limit orders, and are
    jumped in front of. This clearly disrupts the laws of supply and
    demand in the marketplace, and diminishes the usefulness of
    placing limit orders into the system. This results in diminished
    confidence in the marketplace by those placing limit orders, which
    will inevitably result in fewer limit order being placed. This will
    ultimately (and has already) diminished the liquidity in the marketplace, IMO. Why does someone who wants to buy at the market in the first place get a price improvement, while those who want to buy a t a limit price, continuously get price disimproved, via unfilled orders ? I just don't get this one........another "feature" of a totally antiquated market (NYSE).

    I truly believe that "price improvement" was devised by Grasso and company, in an attempt to rid the marketplace of Day Traders. What he is forgetting is that Day Traders contribute positively to liquidity, and Specialists are Day Traders, whose # 1 goal is to make money first; regulate the market 2nd (Grasso himself today said that his job of market regulation is only 1/3 of his job......). Enough said !
     
    #39     Sep 24, 2003
  10. i don't think there is anyone on cnbc that is as arrogant as kudlow and cramer. kudlow loves to run his mouth on fed days and it's a miracle if you can get him to shut up long enough to hear the rate cut announcement.
     
    #40     Sep 25, 2003