• Mar
  • 23
  • 2007
  • 3:58 PM

Routing to ISE, ADF gets underway

By: Ray Pellecchia
File Under: NYSE

Today, we notified member firms that NYSE's ability to route to the International Securities Exchange and the NASD Alternative Display Facility began this week with a limited number of issues, and is expected to be completed next week, pending continued successful implementation of the new software.

Orders are being routed as Intermarket Sweep Orders on an Immediate or Cancel basis, priced at away market's top- of-book quotes. NYSE will use this router to migrate off the Intermarket Trading System platform starting later next month. Note that the NYSE routes to better-priced top of book only, as required by Reg. NMS.

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Comments

ray, when will the DNS orders go into effect and will that enable traders to keep all their orders on the NYSE without being routed away at extra cost. Thanks.

by tony dey on March 23, 2007 4:44 PM

Tony -- I don't have a date yet, but it's in the works.

Our Do Not Ship order type is pending the SEC's review. We'll announce when it is approved, and at that point we should be able to set a target launch date.

Yes, the DNS instruction will enable traders to keep their orders at NYSE.

Good hearing from you, Tony. Will keep you posted.

by Ray Pellecchia on March 23, 2007 5:17 PM

Ray,

In the last couple of weeks I have noticed that I am being "routed away" more than I was previously. Sometimes this does lead to an improvement in price, even if it's only for a fraction of a second, but lots of time it's only for a penny or two. With spreads sometimes 20 cents or more, this is hardly helpful given the added routing costs that we incur.

Wondering if it would more sense to have some kind of limit on the DNS orders. Like, DNS if it won't improve the price by more than a certain percentage of the spread...

Thanks for your help!

-chris

by Chris on March 24, 2007 9:06 AM

Chris --

Interesting and thoughtful suggestion. Will pass it along to my colleagues here.

Thanks for writing, Chris!

by Ray Pellecchia on March 26, 2007 2:00 PM

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