I hear that the NYSE is thinking of charging 1 dollar / every 1000 limit orders that are cancelled. Has anyone heard the 411 if they are doing to do that or not?
Not a bad idea. There are lots of orders entered that are unfillable... And lots of black boxes trying to SPOOF the market with excessive order entry and order manipulation. Since I probably get some kind of fill on 20-25% of my Limit Orders... And cancel 800-900/day unfilled... It would cost me $1.00/day. Big deal. Something more strict should actually been done... To curb automated order abuse... Like a sliding scale to really nail order spammers HARD.
If NYSE starts charging, it will only reduce their market share even more, and order flow will go to the ecn's instead. Those who want limited order flow are the ones who have a plan to make more money because of it, this will not be good for customers, not good for traders, and will only serve to help a few prosper even more!
There's 2 problems with unlimited order entry... And we are really ONLY talking about automated Black Box orders... Because you cannot enter orders fast enough manually to be a problem. (1) Bandwidth abuse. (2) Market manipulation via order entry algorithms. ANY ** intent ** to manipulate market prices in ANY way is ILLEGAL. Both problems will be out-of-control SOON... and must be addressed. As for NYSE vs ECN... Neither benefits from Algo Traders whose order to execution ratio is 100:1 or more... Detailed regulatory records must be kept for every order entered, etc... There are real costs incurred by exchange/ecn because of order SPAMMERS. This is not the internet... not a playground for hackers. It's the heavily regulated US financial system.