'NYSE Says Good-Bye to Specialists, Hello, DMMs'
http://exchanges.nyse.com/archives/2008/08/hello_dmms.php
"[The NYSE] changed the actual fundamentals for the specialist role in the marketplace," says Miranda Mizen, senior consultant at TABB Group. "It's a welcome move to provide proactive liquditiy, whether it's in the form of dark or light liquidity." ...
...
..."Now [the Designated Market Makers] will need to put [their] liquidity up, so that when an order comes in, it will match against liquidity that is already there, which makes for a more proactive environment," says TABB's Mizen ...
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"Right now the specialist has to yield to the public order flow coming in," explains the NYSE's Abrahall. Under the new plan, DMMs can trade competitively as dealers. Rather than the specialist having price-time priority, the DMM will have parity. That way everyone can get a piece of the execution, Abrahall adds. ...
...
Still, there are plenty of skeptics who argue that these changes have taken the exchange too long to implement. Nonetheless, with the NYSE announcing so many innovatigve initiatives in such a short period of time to attract liquidity and overhaul its technology, it's certainly a market on the move. And while it's hard for a 216-year-old institution to turn itself around on the fly, this one is certainly trying.
"[The NYSE] changed the actual fundamentals for the specialist role in the marketplace," says Miranda Mizen, senior consultant at TABB Group. "It's a welcome move to provide proactive liquditiy, whether it's in the form of dark or light liquidity." ...
...
..."Now [the Designated Market Makers] will need to put [their] liquidity up, so that when an order comes in, it will match against liquidity that is already there, which makes for a more proactive environment," says TABB's Mizen ...
...
"Right now the specialist has to yield to the public order flow coming in," explains the NYSE's Abrahall. Under the new plan, DMMs can trade competitively as dealers. Rather than the specialist having price-time priority, the DMM will have parity. That way everyone can get a piece of the execution, Abrahall adds. ...
...
Still, there are plenty of skeptics who argue that these changes have taken the exchange too long to implement. Nonetheless, with the NYSE announcing so many innovatigve initiatives in such a short period of time to attract liquidity and overhaul its technology, it's certainly a market on the move. And while it's hard for a 216-year-old institution to turn itself around on the fly, this one is certainly trying.
posted by TraderDave at
7:57 PM
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