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NYSE Specialists in electronic world???
- Thread starter RedDuke
- Start date
Quote from Arnie:
Don,
Are you passing through the liquidity rebates from the ECN's to your traders?
They have a choice, based on their own trading style. A. standard rate plus/minus liquidity or B. Mixed rate, so they don't have to be concerned about rebates.
This is all subject to change based on what we see on the NYSE over the next few months. But, yes, the traders get a flow through.
Don
Quote from mschey:
The purpose of the specialist is to take the orderflow....look where your orders are at, and print 5k shars .01 in front of your order. Someone gets those orders before I have a chance to even see them.
You guys that cheer for electronic markets don't know what the hell you're talking about. Do you realize how much money these hedgefunds have invested in their infrastructure and trading models. HUNDREDS OF MILLIONS OF DOLLARS! Do you really think you're going to get an edge over them? Do you really think that your tradestation model will compare? Ain't happening!
When the specialist goes, you'll be dreaming about the good ol' days.
Couldn't agree with you more. Look at what they are doing to the Nasdaq.
So if many of the trades will go electronic and no price improvement whats the purpose of trading nyse?i noticed the other day trading vlo and it reversed on me and tanked i threw in limit nyse and market arca. they filled me 24 cent under on arca and nyse held for 15 cent down. so is price improvement gone for good?
Quote from mschey:
The purpose of the specialist is to take the orderflow....look where your orders are at, and print 5k shars .01 in front of your order. Someone gets those orders before I have a chance to even see them.
You guys that cheer for electronic markets don't know what the hell you're talking about. Do you realize how much money these hedgefunds have invested in their infrastructure and trading models. HUNDREDS OF MILLIONS OF DOLLARS! Do you really think you're going to get an edge over them? Do you really think that your tradestation model will compare? Ain't happening!
When the specialist goes, you'll be dreaming about the good ol' days.
please explain how you managed to adjust to penny increments.
Price improvement of specialists is predicated on the fact of the specialist having the "block" of stock with which to take the opposite position against. His capital + guys in prop shops with standing orders like the Brights/Echos butt up against these blocks at a good price usually just above a big block of buy order which acts as a stop. With the new rules, that block is distributed by the algos and OMS systems in drips/drabs and as such few if any blocks exists for the spec to play against. MSchey is dead on.. we will all be wishing for the good ol days when spec in its curent form goes away.
Quote from zdreg:
please explain how you managed to adjust to penny increments.
I didn't have to adjust to penny increments, it's all I ever knew. I came in just after they implemented penny's. So I just observed, learned, and created a plan/strategy for execution.
How will I adapt to the new market structure. I will observe how the market trades, and then I will look at how many of the stocks I trade actually trade over a few days, then I will come up with a plan for determining when I want to buy and when I want to sell and the best way to do this. I'm not looking forward to this, and I think the public is going to get fleeced for the next few months until reg nms goes into effect.
I imagine that two of my programs will continue to work, one will no longer work, and one might have to be revised a little. Hope for the best, plan for the worst is my philosophy here.
does anyone here say something about amex specialist? Are they very different than those nyse ones?
Quote from mcelitetrader:
When trading volume is low the specialist will allow the autoex system to carry all the trades. There are some interesting articles on the matching process and how the book is swept for bids offers and price improvements on the NYSE website [/B]
And,
mcelitetrader, could you please post the detail link of those articals?
Thanks in advance