NYSE Increments

ArbProfit · May 2, 2004

Has anyone heard any more good debates about the NYSE going to nickles and dimes rather than pennies? Having $100+ stocks trading on pennies is a bit absurd. I've heard the arguments that this would not lead to increased profits for traders, but for arb-style traders it would absolutely lead to increased profits.

grimer11 · May 2, 2004

the current "5 cent rule" is ABSURD.......its the thing I hate most about NYSE and has contributed quite strongly imo to te strangulation of volatility.

ArbProfit · May 3, 2004

Could you please explain what this "5 cent rule" is? I've yet to speak with someone who knows what you're refering to.

grimer11 · May 3, 2004

do you work in a deli?

ArbProfit · May 3, 2004

Is that supposed to help?

ratboy88 · May 3, 2004

Quote from ArbProfit:

Has anyone heard any more good debates about the NYSE going to nickles and dimes rather than pennies? Having $100+ stocks trading on pennies is a bit absurd. I've heard the arguments that this would not lead to increased profits for traders, but for arb-style traders it would absolutely lead to increased profits.

it absolutely would increase traders profits!!!!!!!!!

the only "5 cent rule" i know of has to due with direct plus, i.e. you can't hit/take a bid/offer that is more than 5 cents away from the last price.

ArbProfit · May 3, 2004

That must be specific to direct plus because it certainly isn't an NYSE rule. Perhaps grimer11 thinks it is.

grimer11 · May 3, 2004

good luck in your next line of work.

grimer11

ratboy88 · May 3, 2004

grimer...what are you talking about? 5 cent increments or the direct plus rule?

ArbProfit · May 3, 2004

Thanks grimer but we're making very good money on the NYSE.