HYBRID, good news.

Quote from MasterRaistlin:

Which NMS rule are you referring to Don and how do you feel it will affect day trading?

Thanks
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The "National Market System" rule will (should) make is so that the ECN's or exchanges cannot trade at "worse" prices than posted by others. Basically a No trade through rule. Still a lot of debate on the "how" of all this.

The extended compliance dates for Rule 610 and Rule 611 are as follows.

Oct. 16, 2006 (Specifications Date): Final date for publication of final technical specifications for the Regulation NMS-compliant trading systems of all automated trading centers that intend to qualify their quotations for trade-through protection under Rule 611 during the Pilot Stocks Phase and All Stock Phase (as defined below).

Feb. 5, 2007 (Trading Phase Date): Final date for full operation of Regulation NMS-compliant trading systems of all automated trading centers intending to qualify their quotations for trade-through protection under Rule 611 during the Pilot Stocks Phase and All Stocks Phase. The period from Feb. 5, 2007, to May 21, 2007, is the “Trading Phase.”

May 21, 2007 (Pilot Stocks Phase Date): Start of full industry compliance with Rule 610 and Rule 611 for 250 NMS stocks (100 NYSE stocks, 100 Nasdaq stocks, and 50 Amex stocks). The period from May 21, 2007 to July 9, 2007 is the “Pilot Stocks Phase.”

July 9, 2007 (All Stocks Phase Date): Start of full industry compliance with Rule 610 and Rule 611 for all remaining NMS stocks. The period from July 9, 2007, to Oct. 8, 2007, is the “All Stocks Phase.”

Oct. 8, 2007 (Completion Date): Completion of phased-in compliance with Rule 610 and Rule 611.

The Commission’s extension of compliance dates and exemptive order are available on its website at www.sec.gov/spotlight/regnms.htm.
From:
http://hybridtalk.nyse.com/archives/2006/05/sec_extends.php


Maybe this will work for you guys. Nice powerpoint presentation.

http://www.stocktrading.com/NMS powerpoint].ppt


Don
 
Quote from brandon12:

Not understanding who's going to take the market orders on nyse? If everyone wants the .002 rebate from arca who's going to post orders on nyse that you can ding? they're going to post on arca to get the rebate. This is just the first phase in shifting vol away from the specialist. Everyone thinks they'll get there .002 from arca when buying at a limit and dumping at the market on nyse for no charge. Won't work that way
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We plan on "resting" orders on ARCA, and hitting bids or taking offers on NYSE. And, yes, I agree that the volume will be shifting in this manner, that's what we told the NYSE people.

(Still funny how the NYSE/ARCA merger appears to have created a rivalry of sorts, but I'm sure that all this will be changing for a long time to come).

With the I.S.E. coming on board with listed stocks and their Mid market potential...?? "Gotta keep looking for the edges"...

Regarding market orders, a real "wait and see" at this point. We rarely use market orders now, and I don't think the same protection will apply to them (not at all sure about this, but I imagine that the Specialist will have the choice to match or fill first or then send to another market...but just a guess).

Don

Don
 
Quote from NYSEtrader123:

If you send an order to take liquidity on the NYSE (SDOT or NX)and there is a better offer on ARCA, will the system give you the better ARCA bid/offer but only charge you the NYSE fee (.00025)?

And if you are offering out on ARCA and you are inside the NYSE (bid/ask) and somebody send an order to buy SDOT or NX, will the inside ARCA order get hit with the .002 rebate. Am i understanding this correctly?

Thanks
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This was posted on Friday on the NYSE HybridTalk weblog under the heading: Q&A: Do Not Ship

"If the NYSE best bid is 50.10 x 1 and the NYSE best offer is 50.20 x 1, but the level 1 bid is arca at 50.16 x 8 and I put out a limit sell of 800 shares at 50.08 to NYSE, will I be getting the 50.16s?"

Your humble blogger responded that in this scenario, NYSE would auto-route your sell order to the market with the highest bid at top of book, in this case Arca's 50.16. An HBC (Hybrid-Building Colleague) then added that we don't guarantee you'll get the other market's price; that's something only the other market can control.

Now, another reader asks about the same scenario What if there is a no ship option for the order? -- Satya

Satya -- A Hybrid-Building Colleague responds:

If your order is designated Do Not Ship, your order will execute at the NYSE at 50.10 down to .08 to complete the order.

Since your instructions were Intermarket Sweep Order (or, Do Not Ship), we will honor those instructions. The resulting executions will be marked to the Consolidated Tape with an indicator denoting that the apparent trade-through was the result of an exempted trade, for which compliance responsibility rests with you.

Thanks for your question, Satya."
 
Quote from ElectricSavant:

Take it...The Devil is in the De...tails
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u got stuff that moves in full dollars every freakin' day with predictable pace and u ain't gonna get crazy to find it; why not employ all that leverege on those moves instead than pickin' up a penny here and a penny there, risk is more or less the same while reward is 100fold. dont make sense to me.
 
Some interpret the risk to be less...I have not been to bootcamp :) (but I understand the labrynth)


Quote from Bitstream:

u got stuff that moves in full dollars every freakin' day with predictable pace and u ain't gonna get crazy to find it; why not employ all that leverege on those moves instead than pickin' up a penny here and a penny there, risk is more or less the same while reward is 100fold. dont make sense to me.
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Quote from ElectricSavant:

Some interpret the risk to be less...I have not been to bootcamp :) (but I understand the labrynth)
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it's not up to interpretetion here and am talkin' about r/r.
 
risk/reward.....how would you think the risk is affected when you supplement with extra profit from the "get-go" on a high win-rate...it seems to me the "getting out" should be interpreted....

looks to me like the Brights get some free money for a few months..

congrats Don and Bob!...and traderclan :)


Quote from Bitstream:

it's not up to interpretetion here and am talkin' about r/r.
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Quote from ElectricSavant:

risk/reward.....how would you think the risk is affected when you supplement with extra profit form the get go on a high win-rate...it seems to me the getting out should be interpreted....
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face it, this is churn and burn tradin' promoted to collect as much commissions as possible, no reason at all for a real professional to trade like this. example is ford on friday, huge predictable move: what u do there, u place orders on both sides or u accumulate on the way down? no brainer.
 
Quote from Huskydog:

This was posted on Friday on the NYSE HybridTalk weblog under the heading: Q&A: Do Not Ship

"If the NYSE best bid is 50.10 x 1 and the NYSE best offer is 50.20 x 1, but the level 1 bid is arca at 50.16 x 8 and I put out a limit sell of 800 shares at 50.08 to NYSE, will I be getting the 50.16s?"

Your humble blogger responded that in this scenario, NYSE would auto-route your sell order to the market with the highest bid at top of book, in this case Arca's 50.16. An HBC (Hybrid-Building Colleague) then added that we don't guarantee you'll get the other market's price; that's something only the other market can control.

Now, another reader asks about the same scenario What if there is a no ship option for the order? -- Satya

Satya -- A Hybrid-Building Colleague responds:

If your order is designated Do Not Ship, your order will execute at the NYSE at 50.10 down to .08 to complete the order.

Since your instructions were Intermarket Sweep Order (or, Do Not Ship), we will honor those instructions. The resulting executions will be marked to the Consolidated Tape with an indicator denoting that the apparent trade-through was the result of an exempted trade, for which compliance responsibility rests with you.

Thanks for your question, Satya."
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Interesting. Thanks for that.
 
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