NYSE specialist

I wonder if anyone can provide me with either a guess or answer for this.

When there is just not enough liquidity on the NY open book, but the T&S shows 250000 shares (one order) filled on NYSE. Does that have to be the specialist filling this guy??

and what rules govern how the specialist fills this guy since his order is so large?
 
Quote from kwancy:

I wonder if anyone can provide me with either a guess or answer for this.

When there is just not enough liquidity on the NY open book, but the T&S shows 250000 shares (one order) filled on NYSE. Does that have to be the specialist filling this guy??

and what rules govern how the specialist fills this guy since his order is so large?
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Specialist would never fill an order like that...they don't trade if they don't feel compelled to anyway (any longer). They can only "participate" and cannot "initiate" or ever take a position that big.

That would likely be a "cross" done by GS or LEH or someone.

Don
 
Quote from Don Bright:

Don't forget that a big portion of funds and other institutions use the VWAP type of order to eliminate the need to "work an order".

Don
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So basically the liability & risk of the order fill falls on the B/D and they gotta do their stuff with the market depth and operate the stock if they want to stay in business. My point still stands, these are standard market operations. Obviously some will go too far, which is why I mention Pump & Dump operations who do cross the line, on more than one level. But to try to go after traders that like to mess with market depth is silly, anyone who has done knows that it's far from a risk free operation. Just because you put orders out there that you intend to cancel, does not mean you won't get hit. For all you know, someone is waiting for you to flash a "fake size".
 
Quote from kwancy:

but I do get my order filled on those large prints on NYSE order..?
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Of course, if you're "in the book" and have a marketable limit order, they have to fill you as well...some of that is going away on October 6th, but you'll still get your fills if they put up a block print through your price.

Don
 
Quote from Hydroblunt:

So basically the liability & risk of the order fill falls on the B/D and they gotta do their stuff with the market depth and operate the stock if they want to stay in business. My point still stands, these are standard market operations. Obviously some will go too far, which is why I mention Pump & Dump operations who do cross the line, on more than one level. But to try to go after traders that like to mess with market depth is silly, anyone who has done knows that it's far from a risk free operation. Just because you put orders out there that you intend to cancel, does not mean you won't get hit. For all you know, someone is waiting for you to flash a "fake size".
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As you've said.."fake" orders are both illegal and stupid. Another reason that L2 became pretty much useless when the allowed the public to have it. Those who do that kind of thing "fake out" the newbies, and those who are actual traders, would never fall for it.

Don
 
Quote from Don Bright:

As you've said.."fake" orders are both illegal and stupid. Another reason that L2 became pretty much useless when the allowed the public to have it. Those who do that kind of thing "fake out" the newbies, and those who are actual traders, would never fall for it.

Don
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yes, but automated sistems fall for it all the time, and you dont even need to fake thousands of shares, 100 will do the trick {they just want to be in front of you.
 
Quote from traderyin:

Can anyone give an example on how the new LRPs work? I read the NYSE article/memo and don't get how the new LRPs work.
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We see a red quote line within our Redi Plus montage showing the pricing levels where "replenishment" may take place....if that's what you're asking.

Don
 
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