Price Improvement on NYSE must GO !

H

hayman

This is a ridiculous concept, which mitigates the usefulness of the Limit Order Book, on the NYSE. Specialists capriciously use this "rule" to penny in front of limit orders, at convenient times. People willing to pay market get price improved (but they were willing to pay at market in the first place !), whereas people with limit orders at the top of the book, get screwed !

The new NYSE regime needs to look closely at this disrupter of normal market supply/demand activity, and make some alterations. This was a Grasso-special, and needs to be removed just like Grasso was.
 
Quote from hayman:

This is a ridiculous concept, which mitigates the usefulness of the Limit Order Book, on the NYSE. Specialists capriciously use this "rule" to penny in front of limit orders, at convenient times. People willing to pay market get price improved (but they were willing to pay at market in the first place !), whereas people with limit orders at the top of the book, get screwed !

The new NYSE regime needs to look closely at this disrupter of normal market supply/demand activity, and make some alterations. This was a Grasso-special, and needs to be removed just like Grasso was.
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im not sure you understand how it works. how in the world can a limit order get screwed by price improvement.
 
I guess you don't have a clue on how it works. Market orders that are price improved don't hit the the best bid/offer, as they should under normal supply/demand situations. They get filled at prices better than that, which effectively shut out those that post post the best bid/offer (limit orders). Do you understand what a limit order is ?
 
If you are the sell order at 50 and the natrual buyer wants to pay 50 thru a mkt order but the specialist steps in and sells it to buyer at 49.99, you get screwed, the buyer pays a penny less and the specilist violates negative obligation rule. .. i think
 
Quote from hayman:

I guess you don't have a clue on how it works. Market orders that are price improved don't hit the the best bid/offer, as they should under normal supply/demand situations. They get filled at prices better than that, which effectively shut out those that post post the best bid/offer (limit orders). Do you understand what a limit order is ? [/QUOTE

if there is enough stock ahead of you to fill that order your not entitled to a fill. it doesnt matter if its limit or market.best price rules. if market is 50.00 by 50.05 and your bid is 50.00 and a market order comes in and the specialist fills it at 50.01 you were outbid. simple as that. the other buyer wouldnt have put in a market order unless he wanted to better your bid.
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The fact that so many traders have such a difficult time
understanding all the specialist rules, in my opinion, is
reason enough to "fix" the current system.


I've been trading the NAZ lately, and quite frankly don't
miss those damn specialists :D

peace

axeman
 
Quote from GATrader:

If you are the sell order at 50 and the natrual buyer wants to pay 50 thru a mkt order but the specialist steps in and sells it to buyer at 49.99, you get screwed, the buyer pays a penny less and the specilist violates negative obligation rule. .. i think
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what other market route would the mm be obligated to to hit your limit and not sell under you if he had shares. thats why you see .001 trades on ecns so people and mm can undercut each other.
 
Last comment based on your prior post, which you just edited.....please review the rules, before commenting. I don't mind discussion/comments/criticism, but I don't enjoy reading your pompous, know-it-all comments, which you always seem to address towards me.
 
Quote from hayman:

Last comment based on your prior post, which you just edited.....please review the rules, before commenting. I don't mind discussion/comments/criticism, but I don't enjoy reading your pompous, know-it-all comments, which you always seem to address towards me.
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i wrote too fast on last post. i was incorrect thats why i edited it.
you seem to be wrong a lot about this subject. thats why you get corrected. i do know a little bit about trading nyse. try trading ecns for a while and see how you get treated there. then come back and compare.
 
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