NYSE Specialist - Stay or Go - vote here

[Longhorns]

Quote from nitro:

Because they are human and often cannot keep up with supply/demand coming into his post, he often freezes the book while he matches buys and sells, mostly market orders with size (usually > than what can be accomidated by NX as a limit order.) nitro

That is one of the major reasons why the specialist needs to go.

For example, take yesterdays WHR/MYG announcement. The specialists gapped and held orders for MINUTES before making prints that were POINTS above the last trades before the news broke.

WTF kind of "efficient market" is that? Gapping stocks for points without any trades going off is hardly efficient.

In an electronic market, a trader has an opportunity to get shares instead of waiting for a random block print 2-3 points higher.

Again, that is just my opinion.

 

[jimrockford]

Quote from nitro:

I read the article. The NYSE is on the mafia's payroll? Well, that is bad!!! But you know what? IT DOESN"T AFFECT MY TRADING THE NYSE PROFITABILITY ONE BIT!!!

Further, the NYSE is not the only exchange that has that problem. Where there is money, there is mafioso.

nitro

I was using that as a figure of speech, Nitro. I did not literally mean than the mafia are connected with NYSE. I meant that NYSE exchange officials, who play the role of policing NYSE trading, and enforcing NYSE rules and U.S. securities laws, are dirty and corrupt and they are part of the NYSE racket. I was using the example of cops on the mafia's payroll as an ANALOGY, as a FIGURE OF SPEECH to illustrate the concept of a fundamentally corrupt institution.

 

[nitro]

So you think that an electronic market would have gotten you a better price? How? The stock would have been halted, then the electronic market makers would have done the same thing!!!!

nitro

Quote from Longhorns:

That is one of the major reasons why the specialist needs to go.

For example, take yesterdays WHR/MYG announcement. The specialists gapped and held orders for MINUTES before making prints that were POINTS above the last trades before the news broke.

WTF kind of "efficient market" is that? Gapping stocks for points without any trades going off is hardly efficient.

In an electronic market, a trader has an opportunity to get shares instead of waiting for a random block print 2-3 points higher.

Again, that is just my opinion.

 

[jimrockford]

Quote from nitro:

READ MY LIPS - Get rid of specs just shuffles around who is doing the "corruption."

No, smashing NYSE will greatly reduce the corruption, and it will allow more sophisticated traders to better protect themselves from whatever corruption remains.

 

[nitro]

Well, that is bad and should be corrected. But again, I don't understand what that has to do with a spec, with whom your odds of being on the other side of your trade are close to one in ten.

Again, you bid for a stock limit. You get filled or you don't. How are you harmed whether GOD is sitting there watching these guys or the mafia?

nitro

Quote from jimrockford:

I was using that as a figure of speech, Nitro. I did not literally mean than the mafia are connected with NYSE. I meant that NYSE exchange officials, who play the role of policing NYSE trading, and enforcing NYSE rules and U.S. securities laws, are dirty and corrupt and they are part of the NYSE racket. I was using the example of cops on the mafia's payroll as an ANALOGY, as a FIGURE OF SPEECH to illustrate the concept of a fundamentally corrupt institution.

 

[nitro]

Quote from jimrockford:

No, smashing NYSE will greatly reduce the corruption, and it will allow more sophisticated traders to better protect themselves from whatever corruption remains.

Give me an example of how that would be true?

You bid for a stock now. You get filled or you don't. Where is the CORRUPTION?

nitro

 

[Sanjuro]

I'm surprised you don't understand this concept.
If there is no trading halt. A news comes out on a securities.

If it was electronic and the price moved 1 point, a quick trader would have a chance to hit one of the orders at each level to get in or out.

If it was NYSE, the specialist would print a trade-through for 1 point and you would have to take that 1 point gap in order to get in or out.

Quote from nitro:

So you think that an electronic market would have gotten you a better price? How? The stock would have been halted, then the electronic market makers would have done the same thing!!!!

nitro

 

[Longhorns]

Quote from nitro:

So you think that an electronic market would have gotten you a better price? How? The stock would have been halted, then the electronic market makers would have done the same thing!!!!

nitro

Why do you assume it would have been halted?

 

[nitro]

The example given was not that case.

In the case where news comes out in an eletronic market, believe me, you may hit a few morons for a couple of hundred shares if you are reeeeal lucky.

Further, there were ECNs that were trading those stocks then. Why not hit those?

Too funny. Time for dinner. I leave you to your fanstasies.

nitro

Quote from Sanjuro:

I'm surprised you don't understand this concept.
If there is no trading halt. A news comes out on a securities.

If it was electronic and the price moved 1 point, a quick trader would have a chance to hit one of the orders at each level to in or out.

If it was NYSE, the specialist would print a trade-through for 1 point and you would have to take that 1 point gap in order to get in or out.

 

[jimrockford]

Quote from nitro:

Well, that is bad and should be corrected. But again, I don't understand what that has to do with a spec, with whom your odds of being on the other side of your trade are close to one in ten.

Again, you bid for a stock limit. You get filled or you don't. How are you harmed whether GOD is sitting there watching these guys or the mafia?

nitro

The spec prevents your limit buy order from getting filled in many situations where it should have been filled, because there were willing sellers at your price and your order should have had priority. If the specialist follows the rules, then still, NYSE priority rules unfairly allow floor traders ways to step in front of your order at the same price, even though your order was first in time. If your limit order was marketable, then the specialist causes you to pay a higher price, on average, than you should have paid (assuming you are not one of the talented traders who have developed special skills for profiting from the various NYSE tells). The specialist delays your order, so that you lack information as to your position, and are therefore unable to take appropriate action to protect your interests while you are waiting to find out your position. If you try to cancel your order, then the specialist will often delay or prevent your cancellation, causing you to suffer unfair losses. The specialist's bogus ask price often operates thru the trade-thru rule to block you from getting the execution you would otherwise be able to obtain in a market center other than NYSE. The trade-thru rule allows the specialist to corrupt trading not only in his own den of thieves, but also to obstruct normal operations of the entire National Market System (including ECNs, regionals, and the 3rd-market). The government protects the NYSE monopoly, thru the trade-thru rule, by blocking OTHER markets from trading thru the NYSE quote. Thank god the SEC has decided to eliminate this problem. This is not a complete catalog of what is wrong with the NYSE, but I think it answers your question.

If you are really interested, maybe you could do some research? I mean, this stuff isn't secret, why don't you do some research on NYSE corruption?