No more NYSE imbalances?

C

cashonly

Bright Trading, LLC
I just heard that NYSE is no longer posting opening imbalances on option expiration day... is that true???
 
Here's where the NYSE requested to do it:
http://www.sec.gov/rules/sro/nyse/34-52255.pdf

Here's where the SEC approved it:
http://www.sec.gov/news/digest/dig091505.txt

Somehow, they got the SEC to move on it FAST:

"
ACCELERATED APPROVAL OF PROPOSED RULE CHANGE

The Commission granted accelerated approval to a proposed rule change submitted under Rule 19b-4 under the Securities Exchange Act of 1934 by the New York Stock Exchange (SR- NYSE-2005-54) to amend NYSE Rule 123C (Market on the Close Policy and Expiration Procedures) to eliminate the requirement to publish pre-opening Market order imbalances on Expiration Fridays. Publication of the order is expected in the Federal Register during the week of September 19. (Rel. 34-52421)
"

This approval came YESTERDAY.

So, I guess THAT game is over.
 
Does that affect the way OO orders are handled? I always thought the O O's were based primarily in SP fair value,etc and the imbalances play only some part in the order entries?
 
Quote from cashonly:

Here's where the NYSE requested to do it:
http://www.sec.gov/rules/sro/nyse/34-52255.pdf

Here's where the SEC approved it:
http://www.sec.gov/news/digest/dig091505.txt

Somehow, they got the SEC to move on it FAST:

"
ACCELERATED APPROVAL OF PROPOSED RULE CHANGE

The Commission granted accelerated approval to a proposed rule change submitted under Rule 19b-4 under the Securities Exchange Act of 1934 by the New York Stock Exchange (SR- NYSE-2005-54) to amend NYSE Rule 123C (Market on the Close Policy and Expiration Procedures) to eliminate the requirement to publish pre-opening Market order imbalances on Expiration Fridays. Publication of the order is expected in the Federal Register during the week of September 19. (Rel. 34-52421)
"

This approval came YESTERDAY.

So, I guess THAT game is over.
More...

Oh no!! :eek:
 
Thanks for the heads up.

nitro
Quote from cashonly:

Here's where the NYSE requested to do it:
http://www.sec.gov/rules/sro/nyse/34-52255.pdf

Here's where the SEC approved it:
http://www.sec.gov/news/digest/dig091505.txt

Somehow, they got the SEC to move on it FAST:

"
ACCELERATED APPROVAL OF PROPOSED RULE CHANGE

The Commission granted accelerated approval to a proposed rule change submitted under Rule 19b-4 under the Securities Exchange Act of 1934 by the New York Stock Exchange (SR- NYSE-2005-54) to amend NYSE Rule 123C (Market on the Close Policy and Expiration Procedures) to eliminate the requirement to publish pre-opening Market order imbalances on Expiration Fridays. Publication of the order is expected in the Federal Register during the week of September 19. (Rel. 34-52421)
"

This approval came YESTERDAY.

So, I guess THAT game is over.
More...
 
Quote from cashonly:



So, I guess THAT game is over.
More...

Just because they aren't published doesn't mean the game is over. The imbalances are still there. For OOs the prints could be even better since fewer traders will be playing the imbalance. Lots of guys only take the obvious trades. Be creative, there are other ways to tell if there are imbalances on specific stocks.
 
I agree with arbprofit. This would make the order deck of the specialist thinner since the subset of the OO crowd that uses the imbalance information as an indicator would not be there. This could make for higher risk/reward trades. The curious thing is what precipitated this rule. Is the opening the only remaining source of profits for the specialist ?
 
Quote from frank grimes:

It basically give the specs the right to steal.....again.
More...

How so?

Those orders have to be filled on the opening print and if that print is an anomaly (specialist stealing?) then why don't you participate in that print.

The only complaint about specialists that I accept is when orders are held for a ridiculous period of time.
 
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