The possibilty of a cross appears to be the only chance for price improvement. I like the way they hid it under a rule about "Quotations"
Well, germany wants only licensed traders to trade their market! They are trying to pass some legislation that will require you to be sponsored to trade the dax.
So has this liquidity quote thing already passed or is it just a proposal? When will this go into effect? -listedguru
It also looks like they will be using autoquoting which will change the inside quote with new limit orders coming in or being cancelled. I wonder if the NYSE stocks will start to look like the Nasdaq quotes with people flashing and canceling fake size. I guess there will just be more noise to filter out.
I wouldn't worry about it, until we know that it has been activated, or at least passed (that sec link is dated 12/23/02)... I also fail to believe that the NYSE would allow anything to happen that would hurt their monopoly and their specialists...so I don't think this change will matter much in the long run...it probably won't be anything like the change from fractions to decimals...and in that case, the game got easier for the specialists (but more difficult for us)...
I'm confused, Lets say its 51.65 - 51.70 1x5, and no-one is in the book. I bid 51.50 for 2k Joe Panic comes in w/ a market sell order for 10k Old Rules: My fill: 2k @ 51.25 Spec Fill 8k @ 51.25 New Rules: My fill: 2k @ 51.50 :eek: Spec Fill 8k @ 51.25 Is this the jism of it?
I also fail to believe that the NYSE would allow anything to happen that would hurt their monopoly and their specialists...so I don't think this change will matter much in the long run...it probably won't be anything like the change from fractions to decimals...and in that case, the game got easier for the specialists (but more difficult for us)... I can't imagine this last comment could be farther from the truth. Decimals have crippled any type of market maker.
It looks like it allows you to split the bid-ask. This will allow online traders to act as listed market makers. It would be a boon to daytraders the way it was when traders were allowed to split the bid-ask (and have it show up as best bid or ask) on Nasdaq. I don't think it is the NYSE that is pushing this, but rather the SEC. They allow the NYSE to save face making it seem like it was their idea. Of course there is much that can slip, between the lip and the cup.