specialist goin to the can
- Thread starter OVERtheLINE
- Start date
I heard the same new as Overtheline. I guess instead of fighting about if it is true or not we can wait a day or so and see if gets reported on more news services.
Would not surprise me if it was true. They could probably do a swept down on the floor and end up shutting the whole floor down.
Would not surprise me if it was true. They could probably do a swept down on the floor and end up shutting the whole floor down.
To get day traders lousy hopes up?
RichSohn,
ESMF
Damn OVERtheLINE,
did you take this pic by any chance?
http://ombac.org/over_the_line/images/Action Pages/fun play.htm
Think ill drive a couple of miles south...hehe
peace
axeman
this year is the big 50th anniversary!
after getting bounced from the competition as usuall in the first round , ill have my ice machine cooking....where a girl gets a shot of tequila for cooling her chest down
after getting bounced from the competition as usuall in the first round , ill have my ice machine cooking....where a girl gets a shot of tequila for cooling her chest down
NYSE Floor Trader Is Placed on Leave
By Rebecca Byrne
Staff Reporter
04/16/2003 06:08 PM EDT
Click here for more stories by Rebecca Byrne
A New York Stock Exchange floor specialist who manages the stock trading of General Electric (GE:NYSE - news - commentary - research - analysis) for FleetBoston's trading unit reportedly was placed on administrative leave for mishandling customer orders.
The trader was removed from the floor on Monday, according to a report in The Wall Street Journal.
"This is an internal Fleet matter that we're currently handling," said Fleet spokesman James Mahoney, according to the report.
The New York Stock Exchange declined to comment.
A trader contacted by TheStreet.com said the specialist was inappropriately paring buy and sell orders. Typically, specialists have to match buy and sell orders and aren't supposed to profit off the trade, the trader said.
"This specialist was trading for the spread; in other words, he was buying the stock that was for sale and selling the stock that was to buy and making the difference between the two," the trader said. "That's fine as long as the orders can't be pared off, but it seems that he was not acting at all as an auctioneer and whenever possible he was just profiting."
By Rebecca Byrne
Staff Reporter
04/16/2003 06:08 PM EDT
Click here for more stories by Rebecca Byrne
A New York Stock Exchange floor specialist who manages the stock trading of General Electric (GE:NYSE - news - commentary - research - analysis) for FleetBoston's trading unit reportedly was placed on administrative leave for mishandling customer orders.
The trader was removed from the floor on Monday, according to a report in The Wall Street Journal.
"This is an internal Fleet matter that we're currently handling," said Fleet spokesman James Mahoney, according to the report.
The New York Stock Exchange declined to comment.
A trader contacted by TheStreet.com said the specialist was inappropriately paring buy and sell orders. Typically, specialists have to match buy and sell orders and aren't supposed to profit off the trade, the trader said.
"This specialist was trading for the spread; in other words, he was buying the stock that was for sale and selling the stock that was to buy and making the difference between the two," the trader said. "That's fine as long as the orders can't be pared off, but it seems that he was not acting at all as an auctioneer and whenever possible he was just profiting."
Here is the link to the news story: http://www.thestreet.com/_yahoo/markets/rebeccabyrne/10081126.html
The FleetBoston's Specialist who handles GE trades was placed on administrative leave. He was making a profit at the expense of his customers.
The FleetBoston's Specialist who handles GE trades was placed on administrative leave. He was making a profit at the expense of his customers.
Here is a partial quote from the Financial Times
Floor trader is removed amid probe by NYSE
By John Labate, Mary Chung and Vincent Boland
Published: April 16 2003 23:59 | Last Updated: April 16 2003 23:59
A floor trader responsible for buying and selling shares in General Electric at the New York Stock Exchange was removed on Wednesday as part of the exchange's investigation into some of its floor brokers' trading practices.
The trader was identified as David Finnerty, who works for FleetBoston Financial's Fleet Specialists unit. The division is among a handful of firms known as specialists that control the order flow in trading in NYSE-listed stocks. This once-lucrative business has been hit by the bear market and the introduction of decimalisation for stock prices.
The NYSE investigation is understood to have been launched after complaints by leading institutional investors about the conduct of some floor-based specialists that maintain liquidity in the stocks for which they are responsible.
The NYSE declined to comment. James Mahoney, a spokesman for FleetBoston Financial, said: "This is an internal Fleet matter which we are currently handling." An internal investigation is under way at Fleet Specialists, spurred by the exchange's own probe.
The NYSE investigation is understood to centre on the practice of "front-running," whereby a specialist temporarily "freezes" an incoming order from an institutional investor to take a position in the stock ahead of the investor and make a profit.
Among the issues being investigated is trading orders on the NYSE's "designated order turnaround" (DOT) system, an electronic order execution system used by institutional investors for small orders. Traders said the volume of small orders - usually for fewer than 1,000 shares - was so high that the DOT system was easy to manipulate.
Each stage of these transactions is timed, providing a crucial audit trail of each transaction. It is understood that possible manipulation of the timing of some transactions is also part of the investigation.
The probe into possible wrongdoing on its famed trading floor is the latest in a series of setbacks for the NYSE in recent weeks. Its nomination of Sandy Weill, chairman of Citigroup, to its board was attacked by Eliot Spitzer, the New York state attorney-general.
Earlier this week a securities firm run by Kenneth Langone, another NYSE board member, was charged with unlawfully sharing in customers' profits from initial public offerings.
Floor trader is removed amid probe by NYSE
By John Labate, Mary Chung and Vincent Boland
Published: April 16 2003 23:59 | Last Updated: April 16 2003 23:59
A floor trader responsible for buying and selling shares in General Electric at the New York Stock Exchange was removed on Wednesday as part of the exchange's investigation into some of its floor brokers' trading practices.
The trader was identified as David Finnerty, who works for FleetBoston Financial's Fleet Specialists unit. The division is among a handful of firms known as specialists that control the order flow in trading in NYSE-listed stocks. This once-lucrative business has been hit by the bear market and the introduction of decimalisation for stock prices.
The NYSE investigation is understood to have been launched after complaints by leading institutional investors about the conduct of some floor-based specialists that maintain liquidity in the stocks for which they are responsible.
The NYSE declined to comment. James Mahoney, a spokesman for FleetBoston Financial, said: "This is an internal Fleet matter which we are currently handling." An internal investigation is under way at Fleet Specialists, spurred by the exchange's own probe.
The NYSE investigation is understood to centre on the practice of "front-running," whereby a specialist temporarily "freezes" an incoming order from an institutional investor to take a position in the stock ahead of the investor and make a profit.
Among the issues being investigated is trading orders on the NYSE's "designated order turnaround" (DOT) system, an electronic order execution system used by institutional investors for small orders. Traders said the volume of small orders - usually for fewer than 1,000 shares - was so high that the DOT system was easy to manipulate.
Each stage of these transactions is timed, providing a crucial audit trail of each transaction. It is understood that possible manipulation of the timing of some transactions is also part of the investigation.
The probe into possible wrongdoing on its famed trading floor is the latest in a series of setbacks for the NYSE in recent weeks. Its nomination of Sandy Weill, chairman of Citigroup, to its board was attacked by Eliot Spitzer, the New York state attorney-general.
Earlier this week a securities firm run by Kenneth Langone, another NYSE board member, was charged with unlawfully sharing in customers' profits from initial public offerings.