NYSE's Electronic Proposal

From Junius W. Peake
Monfort College of Business
University of Northern Colorado, Greeley, CO

(excerpts from letter to the editor, 2/2/04)

"Information technology advances allow disclosed supply and demand to be made instantly availible in an electronic trading arena. There is no longer any need to pay a monopolist for "price continuity".

"If the best bid is lower than the best offer by any amount, no trading can occur. Only when bid and offer are equal can there be a trade. If there is a spread, and no trading occurs, market makers would be free to enter any bids or offers they wished to narrow spreads. There would be no "affirmative" or "negative" obligations since there would be no need for them."

"The idea of requiring "price continuity" in an electronic age is specious . . . to move a stock slowly up or down because the specialist ( who, presumably, knows why it is changing), is providing "price continuity" is a fraud on the public."

"Specialists are no longer needed or beneficial. Every dollar they make from their monopoly trading profits would otherwise be in the pocket of an investor."
 
Quote from waggie945:

From Junius W. Peake
Monfort College of Business
University of Northern Colorado, Greeley, CO

(excerpts from letter to the editor, 2/2/04)

"Information technology advances allow disclosed supply and demand to be made instantly availible in an electronic trading arena. There is no longer any need to pay a monopolist for "price continuity".

"If the best bid is lower than the best offer by any amount, no trading can occur. Only when bid and offer are equal can there be a trade. If there is a spread, and no trading occurs, market makers would be free to enter any bids or offers they wished to narrow spreads. There would be no "affirmative" or "negative" obligations since there would be no need for them."

"The idea of requiring "price continuity" in an electronic age is specious . . . to move a stock slowly up or down because the specialist ( who, presumably, knows why it is changing), is providing "price continuity" is a fraud on the public."

"Specialists are no longer needed or beneficial. Every dollar they make from their monopoly trading profits would otherwise be in the pocket of an investor."
More...

Nicely worded.
 
Quote from waggie945:

From Junius W. Peake
Monfort College of Business
University of Northern Colorado, Greeley, CO

(excerpts from letter to the editor, 2/2/04)

"Information technology advances allow disclosed supply and demand to be made instantly availible in an electronic trading arena. There is no longer any need to pay a monopolist for "price continuity".

"If the best bid is lower than the best offer by any amount, no trading can occur. Only when bid and offer are equal can there be a trade. If there is a spread, and no trading occurs, market makers would be free to enter any bids or offers they wished to narrow spreads. There would be no "affirmative" or "negative" obligations since there would be no need for them."

"The idea of requiring "price continuity" in an electronic age is specious . . . to move a stock slowly up or down because the specialist ( who, presumably, knows why it is changing), is providing "price continuity" is a fraud on the public."

"Specialists are no longer needed or beneficial. Every dollar they make from their monopoly trading profits would otherwise be in the pocket of an investor."
More...

Yah, cause market makers are much better than specialists, right? So why do all studies show that people get better prices on the NYSE if the specialist system is inferior?
 
Care to give a detailed example of one of the "studies" that you failed to mention as having the NYSE obtaining the best price?

Seriously, do you read all of the propoganda that you read from the New York Stock Exchange?

The fact of the matter is that the specialists have a 30-second window to fill a market order, which is totally unnecessary in this day and age of real-time electronic data transmission and information technology.

If an NYSE specialist spent his entire day filling all of the buy and sell orders ( against market movements ) he would obviously go broke, hence the reason that specialists get 30-seconds to fill a market order. This rule has been around forever.

As Junius W. Peake has indicated:

"The market order was needed when order entry personnel couldn't know what was going on in the trading arena. Today, this isn't a problem because in an electronic market system everyone should be able to see and interact with the very best prices at all times."

Another ridiculous rule is the 5 second delay ( was 10 seconds until early last month ) of the NYSE Open Book. For God's sake how can anyone at the NYSE argue that this delay is in the public's best interest?

Fair and Orderly Markets?
Yeah, right!
 
Quote from waggie945:

Care to give a detailed example of one of the "studies" that you failed to mention as having the NYSE obtaining the best price?

Seriously, do you read all of the propoganda that you read from the New York Stock Exchange?

The fact of the matter is that the specialists have a 30-second window to fill a market order, which is totally unnecessary in this day and age of real-time electronic data transmission and information technology.

If an NYSE specialist spent his entire day filling all of the buy and sell orders ( against market movements ) he would obviously go broke, hence the reason that specialists get 30-seconds to fill a market order. This rule has been around forever.

As Junius W. Peake has indicated:

"The market order was needed when order entry personnel couldn't know what was going on in the trading arena. Today, this isn't a problem because in an electronic market system everyone should be able to see and interact with the very best prices at all times."

Another ridiculous rule is the 5 second delay ( was 10 seconds until early last month ) of the NYSE Open Book. For God's sake how can anyone at the NYSE argue that this delay is in the public's best interest?

Fair and Orderly Markets?
Yeah, right!
More...


Junius W. Peake Monfort Distinguished Professor of Finance Kenneth W. Monfort College


A professor????????????????????????? That's all that needs to be said. :) :) :) :)

That's why he's a professor :) :) :) :)
 
My experience with NY is very limited, as I don't usually trade NY stocks because of delays. The only time I play is in a fast falling or climbing NY stock. Which is when the ECN's step in and, there are no delays.

My last experience was Feb. 25, 26, 27 with ESI after the announcement that it was under investigation. Vol. jumped from a normal average of around 200 to 350k to over 8mil on 25th, 17 mil on the 26th and 1.5+ mil on the 27th. price movement was over $5.00 on two of the days and the ECN's were in front most of the time. Worked okay for me.

But like most folks I hate the delay when I want to cancel on regular trading days, so I usually stick to NASD.

Just my thoughts.

Don
 
http://www.nasdaqtrader.com

upper right hand corner is a banner ad for Chris Concannon over at NASDAQ..

Click on it and register to listen to the electronic web roundtable re: electronic trading down at the NYSE. An NYSE rep will even be participating..

forget which day it is, but it is next week
 
I forgot those silly banner ads change all the time.. after refreshing about 70 times I got the link:

http://www.web-events.info/

sorry bout that :D


Quote from cwjcntr:

http://www.nasdaqtrader.com

upper right hand corner is a banner ad for Chris Concannon over at NASDAQ..

Click on it and register to listen to the electronic web roundtable re: electronic trading down at the NYSE. An NYSE rep will even be participating..

forget which day it is, but it is next week
More...
 
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