Liquidity Quote Info.

i just noticed this today too, i lost track of the whole issue for a few weeks when it was still "up in the air".... and i cant find anything definitive as to how price improvement will be handled... on the nyse site the link shows merely this:

http://www.nysedata.com/liquidity/LQtrading.asp

reading between the lines it seems to say "you may or may not get screwed" and there is not criteria as to what dteremines how orders will be handled in each of the three scenarios...
does anyone know how this will shake out, anyone been following this closely? also it owuld be nice if we could keep one thread and focus on just this issue, a couple months ago when this was first brought up there were several threads on this topic and they all turned into to specialist bashing threads (although wee need htose to) but it would be nice to have a focused, productive thread on how this will effect us and how to trade it.
btw... anyone not familiar to this if they clink on the links here off the nyse site its fairly self-explanatory.
 
I kind of lost touch with the topic too but see the prints all the time. I looked at the link you posted and it was nice and vague. It looks like the order handling will be given a lot of leeway. I guess it will up to the specialist to decide how he will want to fill the orders. I wish the rules would describe different situations when all the limit orders would be filled at their limit prices and when they would be filled in a block order.
 
Quote from cornholetrading:

I kind of lost touch with the topic too but see the prints all the time. I looked at the link you posted and it was nice and vague. It looks like the order handling will be given a lot of leeway. I guess it will up to the specialist to decide how he will want to fill the orders. I wish the rules would describe different situations when all the limit orders would be filled at their limit prices and when they would be filled in a block order.
More...

You say you see the prints all the time. I didn't think it was out yet. What stocks is the nyse testing it on now?

I think Just because a block is above or below the ask/bid doesn't necessarily mean it was from the liquidity quote.
 
This post http://www.nysedata.com/liquidity/LQtrading.asp kind if explains it all. Here is an example of the liquidity quote when you get screwed..... which is what we are concerned about.

-Lets say the market is .74 x .75 size is 10 x 50
-You NX the .75 and 4 other people NX the .75
-The specialist then puts his size at 10 X 1(stops the stock)
-Someone else goes market when the size is 1 and he winds up getting a fill at the liquidity quote say .85
-Now the specialist decides to refresh the size on the offer at .75 making those who went market on the liquidity quote to feel violated and abused.

It kind of happens now, but now instead of being raped blind, the specialist can do it in front of your face :eek:

Banker
 
Quote from BankerBlueChips:

This post http://www.nysedata.com/liquidity/LQtrading.asp kind if explains it all. Here is an example of the liquidity quote when you get screwed..... which is what we are concerned about.

-Lets say the market is .74 x .75 size is 10 x 50
-You NX the .75 and 4 other people NX the .75
-The specialist then puts his size at 10 X 1(stops the stock)
-Someone else goes market when the size is 1 and he winds up getting a fill at the liquidity quote say .85
-Now the specialist decides to refresh the size on the offer at .75 making those who went market on the liquidity quote to feel violated and abused.

It kind of happens now, but now instead of being raped blind, the specialist can do it in front of your face :eek:

Banker
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that someone else's fault for "risking it" and going market... imo.
what i am more concerned about, to use your example: .74x.75
i am offereing .80, and specialist fills me at .80 instead of filling eveyone on one block at .85... all the info out now states the specialist essentialy has discretion to do the print either way
but its so vague and not clear what the guidlines or criteria used in determining how the orders are handled.
 
Quote from Swipe:



You say you see the prints all the time. I didn't think it was out yet. What stocks is the nyse testing it on now?

I think Just because a block is above or below the ask/bid doesn't necessarily mean it was from the liquidity quote.
More...

mynderstading they began beta testing several issues a number of weeks ago, and many of us noticed a significant difference...
if i remeber soem of them were mrk, jnj, and i am most sure about WMT
 
This is how the NYSE is going to help all the specialist firms make back all the money they've lost. Now the can give a liquidity print on both sides of the quoted price and say they're creating a fair and orderly market, when it is really just them scalping everyone else. Once again everybody just gets fu#$ed. Gotta love Grasso.
 
I still think the NX negates much of the problems encountered and gives us an advantage to steal shares from a big size order. The only problem is NX is for max 1099 shares.
 
I don't know if it is true but I heard starting May 1 that you will not be able to NX any stocks with spreads that are more than .05 cents. Has anyone else heard of anything like this? I hope not



M
 
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