NYSE Executions

M

mjt

I don't trade NYSE stocks that much, but the last couple days I've had some trades that seem like they should have been executed. There are 3 possibilities here; I'm trying to figure out which is the case.

1) My broker doesn't offer the best route to NYSE stocks. It's Interactive Brokers. Do they offer the speediest route to NYSE?

2) Someone sent an order before I did. Possible, but it seemed like my orders sat there for about a minute before I saw prints at the price I was trying to buy. I've seen some NYSE trades go through in a couple seconds.

3) The specialist backed away. In the last trade, I placed the trade, and I didn't see any prints at the price I was trying to buy at, and then the quote disappeared. It would seem to me this is backing away.

Any ideas how I can solve this problem?
 
mjt,
orders to NYSE are direct. if you think a trade isn't being routed quickly, send me the details (or to the help desk). via the audit trail it can be determined how fast the order is getting to the exchange.
 
Try def's suggestion as it is best. I would also add a few things.

The specialist could be backing away. I've had a number of orders act strangely as well. I believe it's largely because you have a live person working the issue. Unless you're going against superdot, there could be discretion involved. I believe the key is to make sure the order line goes green in a timely manner...after that it's up to the exchange.

just my .02
 
for a set amount of time. The notion is that he can see if a better
price can be given but not obligated. This means he does not
have to execute your market order. (right away)
 
Once your transmitted order goes green in IB, then you wait for specialist to do his thing. With market orders especially, there may be some delay while the specialist waits for an order to match you with - eg if you put in a market order to sell, there may be a delay before you are filled at a higher price than the posted bid (price improvement). Generally a good thing, although the delay may be a shock to NASDAQ Island traders!

Note some specialists are 'better' than others - would have to say they are mostly surprisingly honest, if that's the word. If your market sell order is filled at a lower than bid price then you may consider filing a complaint to NYSE re specialist BUT first be aware, that the posted bid may be from someone else other than the specialist and he may cancel that bid just before you try to hit it... you never know. On the other hand, if the bid was size 100 then you try to hit it, it drops and you're filled 5 or 10c or worse lower, then the bid miraculously goes back to the original value.... then a complaint would be worthwhile.

There is a limit to how long the specialist can wait before filling your market order - if he can't improve it, he'll then fill you at the posted bid.


coops
 
MJT, Use Direct+ (NYSE's auto-execution) route whenever practical. Many times you'll send a limit order and the specialist will hold it. If it's a sell order for example, someone else may then come in with a NX (Direct+) order and take out the bid that otherwise would have been yours. Note: NX has totally changed the concept of time priority on the NYSE.
In this example, one theory is that the specialist is busy and can't get to your order fast enough (although that shouldn't be an excuse). My theory is that specialists get short knowing a stock is turning downward, and hold all limit sells as long as possible--knowing that others may NX any close bids, thereby forcing the limit seller(s) to lower their offers(s).
Many NYSE traders I know have been astonished by the games arising after the introduction of NX. Another recent occurance has been the ever increasing preponderance of 100 share bids and offers. (Note that I am not talking about 100 share bids/offers created after someone takes out a bid or offer via NX) It's pretty clear that the specialists post 100 share bids/offers to stop NX orders (you can't NX a 100 share bid or offer). In fact I was warned this would happen by specialists themselves during a February trip to the NYSE floor. But it has become ridiculous.
Take a look at any big cap--CPQ for example. The thing traded 60 million shares Wednesday and the specialist constantly displayed 100 share bids/offers throughout the day--despite the fact that it was obvious that supply/demand was much greater than 100 shares at each price. I'm hoping someone someday does a study of the increase in posted 100 share bids/offers. I'm willing to bet they've increase fourfold or more post April 2001, and it is really hampering efficiency in my opinion, to the sole benefit of the specialist's P&L.
 
The specialist can hold a market order or anything he wants.
Go to the nyse website and do some research !!!!
How you place the order - via ISDL or this route or that
MAKES NO DIFFERENCE !!! Check out the NYSE bi-laws and SEC
rules regarding these !!!! I have no time to post the laws here,
but when I traded listed this rule was in effect. I remember we
called the floor several occasions because market orders did
not get filled. They said the same thing 1-2 minute I can't remeber
exactly.
 
Does Def or anyone else know if the NYSE route
through IB uses Direct+, or if it is SuperDot
to the specialist. If Direct+ isn't available though IB,
is there any plan to offer this route in the future?

-v
 
ok, maybe things changed. what is the difference of redi+
and this direct+. I have been out of scalping listed for a while.
cheers
 
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