This new NYSE proposal eliminates price improvement for orders which add liquidity to the market. Rather elegant, if you ask me. No more trading gaps. www.sec.gov/rules/sro/34-47091.htm
I started to read, but legalese is so damn boring. Could you please be so kind as to explain this new rule. Thank you!
For example, A limit order to sell at a price below the bid, where the sell limit is of greater size than the current inside bid size, will be executed at each successive price, instead of as a block trade at the lower sell limit price A market order to sell or buy will also be executed at each successive price where limit orders exist. Further, NX orders which improve the inside market will be auto-reflected in the NYSE quote, without the previous requirement that the specialist update the quote. The new "liquidity quote" reflecting book, crowd, and specialist interest will be auto-gererated and updated.
so the NYSE wants to do away with price improvment and the SEC will double the taxes Looks like its time to trade the DAX !!!!!!!!!!!!!
If you keep on reading way down in it gives an actual example using prices and states that the specialist can still give price improvement.
heres the part... Market Orders When a liquidity bid is published in addition to a best bid, a market order to sell of a size greater than the size of the best bid will be executed to the extent possible against the best bid (or the order will be crossed by the specialist when he or she is acting as agent for the order using the auction market procedures in NYSE Rule 76, which calls for the member to publicly bid and offer on behalf of the orders before making a transaction with him- or herself) with the balance of the sell order being executed at the higher price of the liquidity bid or at the price of other orders on the book below the best bid, but above the liquidity bid. For example, assume the best bid is $20.10 for 200 shares, while the liquidity bid is $20.05 for 10,000 shares, with no other bids in between the best and liquidity bids. If a market order to sell 1000 shares is received by the specialist, 200 shares would trade at the best bid price of $20.10, and 800 shares would trade at $20.05, the liquidity bid price, unless the specialist in crossing the order obtains price improvement for it. If there were other bids on the book between the best and liquidity bids, the sell market order could receive executions at those prices. For example, if, in addition to the best and liquidity bids of $20.10 and $20.05 in the previous example, there were also a bid of $20.07 for 300 shares, the market order to sell would be executed as follows - 200 shares at the best bid of 20.10, 300 shares at $20.07 and 500 shares at the liquidity bid of $20.05, unless the specialist in crossing the order obtains price improvement for it. Market orders to buy would follow the same principles using the best and liquidity offers. Limit Orders NYSE is proposing that similar procedures would be used for the execution of limit orders when there are liquidity bids and offers as well as best bids and offers. In that regard, when a liquidity bid is published in addition to a best bid, a limit order to sell of a size greater than the size of the best bid, but which is limited to a price executable at or above the liquidity bid price, would be executed first against the best bid (or crossed as explained above), with the balance of the order being executed within its limit price at a price at which orders on the book will not be traded through. For example, assume there is a best bid for 200 shares of $20.10 and a liquidity bid of $20.05 for 10,000 shares. In addition, there is a bid for 500 shares at $20.07. If a limit order to sell 1,000 shares at $20.05 is received by the specialist, it would be executed as follows - 200 shares at $20.10, 500 shares at $20.07 and 300 shares at the liquidity bid of $20.05. In all these examples, however, as with market orders, the specialist would follow NYSE auction market crossing procedures in an effort to obtain price improvement for the order. Limit orders to buy would follow the same principles.
to use ecn's insted af the NYSE anyways......... hey worthless short bald guy in charge of the NYSE.... eat shit MF