There is some info here about some upcoming changes to the nyse. A pretty good read IMHO: http://exchanges.nyse.com/archives/2008/06/ten_things.php -Guru
So I guess this news is good for the remaining specialists then? Maybe it will help them bring back order flow... -Guru
Correct me if I'm wrong but NYSE still does not have a strict price, time priority for orders. The NYSE's main rule is to keep a "fair and orderly" market, and they don't have to even follow that mandate 100% of the time. IMHO, ECNs are a better way to trade (unless you are the specialist). Look at ES futures trading on GLOBEX. ES futures are liquid like water and no delays between when you cancel an order and whey you get a confirmed "you are out". There is strict price-time priority for orders so that a one lot player like me is trading on an even playing field with the big boys with respect to order execution.
Most of the time, that's correct. But not always. Example, I placed an order on the NYSE to buy 10,000 IBM at $125.30. I get a partial fill on 2,300 shares leaves 7,700. Five minutes pass. Then I see more stock trade at $125.30 on the NYSE but I get no extra fill reports. I call my floor broker and have him check it out for me. My floor broker says the specialist said "stock ahead". I say if there were stock ahead of me, how did I get filled on 2300 shares. Wouldn't that imply that I'm at the front of the line at that point? My floor broker replied, "specialist said there was stock ahead". That's a typical conversation for the few times that you get screwed by the specialists. Granted, 99% of the time you get fair fills, but the 1% you don't, it hurts.
I have been filled similarly on the NYSE, and was always given the same answer with no other explanation. It seems now you will be able to hide your orders on the NYSE book just like ECN's. So basically from 2000 to 2006 the markets and ECN's touted how they were moving towards greater transparency, and now from 2006 to present the markets have been moving away from transparency as fast as possible. You now have dark pools and you can hide orders on all the exchanges. So you really have no idea at what price the real market is to buy or sell stock.
I Agree! I would prefer to deal with insider trading on a free +open exchange than this hidden order nonsense. Technical analysis may begin to breakdown.. let's then see whether the small trader will be able to continue this game. My systems were spectacular from 2001 till 2004.. then, suddenly, much more erratic trade activity. Still profitable.. but far fewer clear opportunities.. intraday. My end of day models still work well.. but experience larger than normal drawdowns. Mh
I still prefer trading nyse stocks to nasdaq. I think hybrid was the low point of the nyse model and these changes they are implementing will move us back in the right direction (more price improvement, more liqudity, etc). -Guru (but maybe I'm bias, lol)...