Execution Problems

Gene, you seem like a very nice guy; so no offense, but you are a bias commentator with respect to REDI--although you will deny it. Your firm is an SLK customer and REDI user, so you have a vested interest in diffusing the heat from SLK.

More to the point, despite lives being lost--a true crime to be sure--it doesn't take away from the fact that SLK has responsibilities to its customers. Mirror sites are designed precisely for the purpose of continuing business as usual in the event of tragedy. Most of my good friends use REDI, and every single one has had serious and ongoing REDI issues. SLK's back-up capabilities are clearly inadequate, regardless of the WTC circumstances.

One last point, we use VTS (although I'm not a fan of it) and have not had any problems with order routing or cancels.
 
we use VTS (although I'm not a fan of it) and have not had any problems with order routing or cancels.

TomHerald62,

I'm curious, who's your broker.

Bob
 
Gene,

Which execution are faster?
1) Thru SLK's REDI
2) Thru Dot System
3) Thru other like ABN Ambro

Does all the order have to go to the exchange floor. Does SLK or ABN just act like a third party or they still have to route it to the exchange floor.
 
I just want to say that I am not biased in the use of
REDI+. WE use ROX from www.roxsystems.com as
a backup. REDI+ had their main offices closed because
of the WTC tragedy!The number of selfish comments on
this board is beyond belief. We could switch all of our
users to our backup system in one day if we wanted to.
SLK is owned by Goldman-Sachs and they have the
resources to come back. I am giving them time to
recover from this tragedy. SLK lost all their phone lines
at their main office and were back in business in 4
days! Give me a break!!!!

All users(customers) have to go through a third party
(introducing Broker/Software Service Bureau/BD) to
connect to the NYSE ,ECN's or NASDAQ. There is no direct
connection to the NYSE/NASDAQ/ECN's for customers. Be
aware there is really no auto-ex on the NYSE , execept for
ECN NYSE executions. NYSE executions can be routed to
a third market like NITE Trimark or the CSE. Most EDAT
software route to the NYSE.



PS With all the REDI+ problems, Our top traders had
some of there best weeks of the year. The main
reason they made money is because they are
talented traders-Gene
 
REDI+ is the largest direct access software in terms of
number of shares traded. They have a backup site at
Jersey City,NJ. , which is up. Phone & WAN lines all over the
NYC are are having problems. It still amazes me at some
of the comments people on this board make.

 
Gene,

You seem upset. Don't be mad. Like I said, I mean nothing personal, but no trader I know cares about the reason why SLK's lines are down. The point is--REDI's outages are costing them real money and more importantly, SLK is supposed to have a backup site that WORKS!!!

Is it selfish to want a reliable platform when others have access to fully operational systems? Don't confuse the WTC devastation, and its tragic consequences, with the rationale behind redundancy.

P.S.> The NYSE DOES have auto-execution; it's called Direct+.
 
Our office has ISI and redi and I have used many others. When redi worked it seemed faster that ISI. I know my cancels came back faster and more often. Of course it is very hard to do a side by side comparison with NYSE stocks (doing it over many simultaneous trades). So the above opinion is based on a couple years of experience with each but only a few side by side trades.

Another plus for Redi is that I liked to have the prices populate my windows. However, even before the WTC tragedy REDI lagged hard on big volume days. That is why I plan to have REDI there for normal days but also have ISI for high volume days.

By the way there is a big difference between the platforms mentioned on this site. I think one should always be testing platforms and looking for the best technology. I am always looking to move to the best stuff. At times that seems to have been Redi however at other times you have to be flexible.

 
I'm not mad at my fellow traders, but you really have to
think before you complain. REDI+ is the largest EDAT
platform in terms of shares traded according to a
study by Keefe,Bruyette & Woods . REDI & SLK
lost connections to all their phone, WAN and computers
in the WTC collapse. Keefe, Bruyeete & Woods lost many
lives in the attack at the WTC. Go to their web site at
http://www.kbw.com/ . The point I'm making is that
these are very unusual times. If a firm has to relocate
1000 employees and equipment in 4 days, there is
going to be problems. SLK has backup in Jersey City,
NJ and they have been having problems . I will give REDI
time to get their systems in order. They are backed by
Goldman-Sachs and have the financial backing to come
back strong. We have two back up systems at our offices
(ROX & Instinet) , which I think is a good idea for any
firm or trading desk. The Internet can be a good backup
in case WAN lines go down , utilizing the same software.

NYSE NX (Direct) is not a true auto-ex. The NYSE specialist
has the ability to shut off NX(with NYSE permission) or break
trades that do not comply with NX rules. NX trades have time
restrictions and orders cannot be bundled(ie Buy 5000 shares
in 1000 share lots). There are no such restrictions on ECN
trades, which is a true auto-ex when orders are matched
at the same price. See NYSE direct rules from SLK memo at
http://www.redi.com/apr12.html . ALL traders who enter
orders on NYSE DIRECT , should read this.

 
Interesting comments on SLK, et al. One thing to keep in mind when discussing performance and order handling is the fact that ROX, VTS, ABN AMRO (ISI) and a few other systems mentioned here do not compete with client order flow. Remember, SLK is the largest specialist group on the NYSE floor.
 
With EDAT software, you select the route you want.
SLK does make markets in many NYSE stocks, however
order flow goes through the DOT and is treated like
all other orders from any clearing firm. I doubt the
NYSE specialist cares who the clearing firm for the
order is. ABN AMBRO does investment banking and
market making but is not partners in any NYSE
specialist book that I'm aware of. EDAT(Direct Access)
software lets the trader select the order routing, the
traders clearing firm ,introducing broker or affilation
should not affect order execution.



Gene Weissman
Lieber & Weissman Sec.,L.L.C.
gweissman@stocktrade.net
 
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