Are the NYSE Specailists crooked or fair?

[Copernicus]

Quote from 88888accountant:

Okay, too much arguing on the observation thread, so lets have it in numbers.

and please no double polling.

the dinosaurs are about to become extinct
heard stories of some of them trying to actually trade upstairs for a change, we all know how that turned out........

 

[Bitstream]

Quote from 88888accountant:

Remeber the XOM order though a few months back? I think the specialist did an excellent job considering the volume and th GS screw up

was that manipulation in your opinion?
it was a negotiated closing order for an unusually big block trade, nothin' more, mothin' less: it happens.

 

[syswizard]

I don't want a fully electronic system: beauty of BB is the huge trends on upgrades and earnings and a much more orderly mkt...naz is atrocious in these regards, stocks with news are all over the place and difficult to read, I don't care if the spec steals (once in a while ;D), he never stole from me anyways.

I just returned from a visit to a credible "prop" trading firm in NYC....and I couldn't believe what I heard: 90% of their trading volume was coming from NYSE stocks vs. Nasdaq stocks. I was like "What the f..k ?". What about this ECN "level playing field".
Apparently, it's been "corrupted" by nasty "black boxes" placed in there by Merrill, Morgan Stanley, GSCO, and the rest to make it VERY DIFFICULT to read Level II on Nasdaq traded stocks. They hired PhD "quants" to throw a "monkey wrench" into the works !

 

[stock777]

I have beefed for quite some time that old style L2 reading has been impossible since the computers took over.

Interesting that you say these prop guys confirm that.

Did they say anything else of interest?

 

[syswizard]

Not much...same old, same old:
with this low volatility environment, some traders are only "working" from 9:30 to 11:00 and then 2:30 till close.
Mid-day action has proven to chop them up, so now they don't trade then.

 

[RedManPlus]

It's important to understand that the NYSE, as a Self-Regulatory Organization...
Has created enforcement parameters that circumvent Laws passed by Congress...
Such as the various "Securities Acts" of the early 30s.

"Backing away" is a perfect example. It means posting a bid/offer and then withdrawing it when someone tries to get a fill.

This is illegal because it's a very blatant form of market manuipualtion.

If you go to the NYSE web site...
And start reading through "enforcement actions"... a shocking realization emerges.

Specialists are graded on the PERCENT OF TIME that they "back away".
If you "back away" less than about 3% of the time...
You are a fine chap and "in compliance".

In other words, if you only rape 3% of the women you date...
Then you are a certified pillar of society.

So in ANY given situation versus me or for any reason...
The Specialist can break virtually any law passed by Congress...
As long as he rapes his customers less than about 3% of the time.

There is a name for this... Organized Crime.
That's why Dick Grasso and a 100 others should be in jail.
But SEC has too many conflicts of interest with the NYSE to do much...
So takes a lone cowboy like Spitzer to take on the Bad Guys... and do what he can.

rm+

 

[stock777]

Quote from syswizard:

Not much...same old, same old:
with this low volatility environment, some traders are only "working" from 9:30 to 11:00 and then 2:30 till close.
Mid-day action has proven to chop them up, so now they don't trade then.

Actually, there's plenty of vol in stocks, just harder to get it right. And there were always traders that skipped the afternoon, even in the wildest of times.

 

[Avid_Consumer]

wow, so 3% is the magic number at the nyse. that means i must be one of his favorite people to back away from, because it happens on at least half of my attempted nyse executions