NYSE 'investigation'
- Thread starter chasinfla
- Start date
I would much rather trade against 1 crook on NYSE than 10 to 20 crooks on NASDAQ. As far as ecn's go, forgot the last time Island or INCA gave me a 50c. price improvement. Clearly, the number of high quality companies that trade on NYSE or the number of companies worldwide that want to get listed on NYSE speaks for itself. Several trading firms are being investigated for front running - terrific, I think executions will get much better because of this, especially if they throw some individual specialist out of business. If some of of you are happy trading NASDAQ because of its structure, why would you care so much about NYSE and the way it is structured. Leave it alone. As far as people trading NYSE and complain about it being tougher to trade lately, its obviously because of the lack of liquidity on most days. This too shall pass. I don't see people that have traded for at least 10 years complain about anything, they know its tougher, but they also know why and have adjusted their trading.
shneed
shneed
For the last time: price improvement on the NYSE is just the specialist taking money out of your pocket and handing you back half and calling it "price improvement".
On the whole, NYSE stocks are more liquid than Nasdaq. They would adapt well to an all electronic environment.
GE would trade like MSFT with a tiny spread, instant fills.
After the 1987 crash the SEC opened up the Nasdaq because the market makers abused their postilion. SOES was the start.
Now, after the crash of 2000-2003 NYSE specialists have been found to be abusing their postilions - time to open things up - could be great scalping opportunities ahead in NYSE stocks if this happens as the specialists probably won't know how to trade in a truly competitive environment.
GE is one of the highest volume stocks.
There are A LOT more stocks on NY than Nasdaq.
What about stocks that trade less than 200,000 shares per day and I want 3000 shares.
With the specialist system I can trade take a trade and find an opposing side. With ECN I'd run that stupid price up a point or 2 easily on a stock priced around 30.
Now if I'm constantly offer liquidity and more than half of my fills get price improvement how is that taking out of my pocket?.
I buy on the bid and try to sell on the offer.
It's nice when I can buy a bid .20 lower than the spread and sell on an offer than .30 higher that a few seconds ago.
Oh wait....you like ECN's. Tea you wouldn't know about this. As your price is what you get --that's it.
Think ECN's are liquid. Well watch a NASDAQ stock when it has serious news.
They all hit that cancel button at once. I've seen the price change within a few seconds. VXGN about 2 months ago a week before the report comes to mind. 2.25 points lower with only 2 prints on ECN's for less than 400 shares total on the way down.
That sucks if you were long and wanted to get out.
leave the system alone. If you want to have a NASDAQ system that trade NASDAQ. There are guys who like NY. If you can't make money trading NY than either don't trade it or change your style of trading.