Observations on the NYSE specialist.

Rockford,

You are 100% wrong again. Yes, you are still wrong!

This should be simple, even for you (even though I know that you said you think one needs to be a lawyer or reg expert to trade on NYSE)

A larger order CANNOT jump ahead of any order on the book which has time priority, as you advised Dan!!

I am beginning to wonder about your mental state since you keep insisting this was the case even though the evidence has been well established all over this thread for pages, as well as in the very rules that YOU YOURSELF POSTED, that it cannot!

You are doing readers of this thread a HUGE DISSERVICE by continually saying something which cannot be true is.
 
Quote from jimrockford:

cstu,

I believe that most of your audience, here, does not know the meaning of that word, "match". I think you are probably using a lot of lingo that your audience here does not understand. I think that if you can explain terminology and dumb it down a little, you will be even more helpful to even more people.
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Don't assume that the other participants on ET have level of understanding of the ENGLISH language as inept as your own. The word 'match' is easily understood by everyone on this board.

Take a deep breath and you will feel better.
 
All readers please be advised that Hamlet has engaged in a longstanding pattern of harassing me by falsely claiming that I made statements which I did not make, or by falsely altering my statements in order to change them into statements I did not make. He has, for example, continued to attribute some of the same false statements to me, even after I have already denied making them. I don't want to waste any more time going into specific denials of each specific statement he falsely attributes to me, so I will just post this general warning that all should disregard Hamlet's false descriptions of my statements.
 
Quote from jimrockford:

I was very concerned that we would lose the benefit of your participation, because of the atrocious unrestrained behavior which continues in this thread.
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Rockford, the only atrociousness here is your own, consisting of lies and false charges against the specialists and the NYSE. Additionally, you have polluted this thread with the never-ending verbose sewage that you spew forth in attempt to justify or affirm, through brute-force, your rehashed falsehoods and misconceptions.

Clearly your elevated ego has clouded your own reasoning whereas you refuse to accept simple truths and see things as they are. The answer to the problem was in the very rule that you cited from the beginning, but you carried on for endless pages about being "right" in your assertion, to which I duly offered a correction so as to minimize the amount of misinformation taken in by those who wander to this thread.

A little open-mindedness would serve you well. I cannot imagine, if you are a trader, that your emotions exist there in the same state as you have shown us here, for that sort of stubbornness surely spells doom in that field.
 
Quote from jimrockford:

All readers please be advised that Hamlet has engaged in a longstanding pattern of harassing me by falsely claiming that I made statements which I did not make, or by falsely altering my statements in order to change them into statements I did not make. He has, for example, continued to attribute some of the same false statements to me, even after I have already denied making them. I don't want to waste any more time going into specific denials of each specific statement he falsely attributes to me, so I will just post this general warning that all should disregard Hamlet's false descriptions of my statements.
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I am happy to prove to Rockford and anyone else interested that I have not altered or falsely attributed any of his statements. Everything is documented.
 
Quote from jimrockford:

I believe that most of your audience, here, does not know the meaning of that word, "match".
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Most of us who really trades know the meaning of 'match'.
 
Quote from cstu:

if I don't try to explain every rule that pops up once a millenium, someone will jump in questioning my background, knowledge, and integity.

***

4. Each trading entity at a specific price is entitled to a "match". 2000 shares trade at the offer four brokers sell 500 shares each(the specialist and three floor brokers).

***

This is all based on everyone being on parity, but it would best serve the purposes here to have parity be a given in all circumstance.
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Thanks again, cstu,

but nobody is questioning your background, knowledge, or integrity. The other postings you see indicate that I am the lightning rod for psychotic personal attacks!

You indicate that a match is used to allocate a trade between competing parties "on parity". Can you explain what I see as a discrepancy between the way you describe a match, and the way it is described in NYSE rules?

You describe a match as a process that produces, for each entity on parity, an equal fractional participation in the size of the trade; for example, 2000 shares split four ways yields 500 shares for each party on parity. NYSE rules, however, describe a match as a winner-take-all process, which randomly selects only one of the several entities on parity, and then fills that winner's order to the maximum possible extent. If any shares remain, after filling the winner, then the losers conduct a second match, by which the second winner takes all. This process continues until the entire trade has been allocated.

NYSE Rule 72 contains this description of the matching process, in Examples VI. and VII., as follows:

VI.

Bids

A—100

B—400} Bid
C—400} simultaneously

D—300

E—200


Offers

F-700

A receives 100 under paragraph I(a). Under paragraph I(e), B and C are on a parity and under paragraph I(d) have precedence because of largest number of shares. B and C match for 400 and the remaining 200 goes to the one who lost the match.


VII.

Bids

E-600

Offers

A—400

B—400 Offered
C—400 simultaneously

D—200

Under paragraph I(e), A, B and C are on parity and under paragraph I(d) have precedence as to amount over D. A, B and C match for 400. Losers of first match should match for balance of 200 shares.
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So, can you explain why the NYSE rules appear to describe the matching process differently than do you?
 
Quote from syrre:

Most of us who really trades know the meaning of 'match'.
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I doubt it. The only people on this thread, who have acknowledged that price-time priority is confined to the specialist's order book and does not govern the NYSE auction process, and who have acknowledged that NYSE floor brokers are not limited by price-time priority and can sometimes jump in front of the specialist's book, are myself, the former specialist cstu, and also my quotations of Professors Blume and Hasbrouck.
 
Quote from jimrockford:

NYSE rules, however, describe a match as a winner-take-all process, which randomly selects only one of the several entities on parity, and then fills that winner's order to the maximum possible extent.
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Where does it say that a lot is randomly selected in a winner-take-all lottery?
 
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