NYSE Clarifies Its Automation Campaign
The New York Stock Exchange is in the process of updating its systems so that trades can be executed faster. The proposal blends the existing auction system, which requires human intervention, with an automated system.The New York Stock Exchange has filed additional information on its hybrid market with the U.S. Securities and Exchange Commission, clarifying the rules and functionality of the expanded NYSE Direct+ automatic order-execution service. The supplemental filing details the rules governing automatic-execution orders, sweeps of the limit-order book, specialist and broker interest files and algorithms, and other features of the hybrid market such as "liquidity replenishment points"the points at which the auction will have an opportunity to supply liquidity to dampen volatility. Also included are multiple specific examples on how orders will be handled under various trading scenarios. "Blending the auction market with more automation reflects the exchanges commitment to our customers and further developing our market," NYSE CEO John A. Thain said. "The hybrid market provides the most compelling array of choices for trading NYSE-listed securities and will allow us to better accommodate the diverse trading strategies of our customers."
Bill Cline, head of Accentures Capital Markets practice, said, "Clearly the proposals around Direct +, especially with this clarification, go a long way toward meeting the primary concern of institutional traders, which is the lack of immediacy with NYSE trading."