• Aug
  • 10
  • 2006
  • 3:33 AM

Phase III dress rehearsal on Sept. 30

By: Ray Pellecchia
File Under: NYSE

A reader on the sell side writes:

Is there testing planned for September 30th?

Yes, there is. We plan to have a "dress rehearsal" on Saturday morning, Sept. 30. The idea is to enable both the trading floor and the trading community to ensure their readiness in advance of Phase III, which will begin a gradual rollout on Oct. 6. I don't have details yet, but we will announce them shortly, including an Information Memo to members and member firms, notices to the community and even a post in this humble space. Stay tuned, and thanks for writing.

Comments

Ray,
Having a dress rehersal, does it seem this phase
is going to have the biggest effect on the trading community?

by jeff on August 11, 2006 5:54 PM

Ray,
Thanks a bunch for your response.
Cheers!

by Jeff on August 14, 2006 9:12 PM

Jeff -- To me, picking a phase that has the biggest impact is a little like picking a favorite child; they all seem important. Also, it depends on where you sit: if you're a trader who uses a floor broker, you might think that Phase I, which introduced NYSE e-Quotes, is most important.

But stepping back and trying to think about impacts on the trading community as a whole, you're right: Phase III, which begins a gradual rollout on Oct. 6, is the biggest enchilada.

Phase III will introduce a number of important features, including:

• NYSE Direct+ modifications, including increasing the eligibility to 1 million shares from 1,099; removing the frequency restrictions; and accepting market orders in addition to limit orders; note, in this phase, all marketable orders will be treated as NX (auto-ex), so there is no requirement to mark them that way anymore

• Discretionary e-Quote for floor brokers, and by extension their customers

• Sweeps, as re-defined here

• Liquidity Replenishment Points, also as re-defined immediately above

• Automated linkage to ITS

There are other features as well; watch this space for more. Thanks for writing, and sorry for not getting back to you faster.

by Ray Pellecchia on August 15, 2006 10:47 AM

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