Recently NYSE received approval from SEC to Launch NYSE open book on January 24, 2002. This will allow subscribers to view the specialistâs limit-order book ! It will show the aggregate limit-order volume at every bid and offer price outside the displayed NYSE quote. http://www.nysedata.com/openbook/ Unlike some ECNs that provide similar data for free, NYSE Open book will cost over $50/month per display and will refresh every 10 seconds Who will subscribe? How this "Level II" for NYSE will change listed stocks trading? Fohat
I can tell you one thing. It will destroy the advantages that NYSE has over OTC trading. The liquidity will vanish. The specialist won't take a stance without solid size orders to lean on, and no one will post size. The size will be floor orders and only spoken orders at that. We will never be able to see them anyway.
It will lead to an increase in specialist games, making NYSE tape reading more difficult... NYSE tape readers may have to start using other strategies in order to maintain their profitability.
What will we see on the book? Will it just be size, like Island book or will it show MM's identity like Lev II? I can't see paying anything for a book that does not disclose identities and that you can't execute against. Does anyone plan to sign up for it, and if so, why?
Its seems to me this whole open book thing is a joke, another marketing gimmick. 50 bucks per month for delayed data? C'mon. BTW while we are talking about the NYSE, there was an interesting article in the last 2001 issue of the Economist about how the NYSE took advantage of the Amex shutdown after 9/11 to take business away from Amex MM's in the Q's all the while looking like they were helping out Amex traders.
i get the book from reuters, also 50 bucks/month. there is only a delay when reuters as a whole is slow(charts, tape etc). many times you will see size stepping up or down as much as 5 seconds before seeing the step on the tape. you usually see the step on the book 1st. the book rules! - i run a desk in nyc. i offer cheap rates and a very consistent trading method (only 1 down day in june -$105). please contact me if interested.
"per display and will refresh every 10 seconds" Ooooohhh, such speed! With that kind of updating, the ECN's better catch up with comparable real-time info... But what does speed matter with specialists anyway, I mean, you will get the fill if it goes against you and miss the fill if it is to their advantage to not give it to you.
I guess you have to define "instantaneous". To NYSE and ARCA that is defined as "seconds". To ISLD and other ECN's it is defined as "miliseconds"