Table of Contents

Four of the six charges against former NYSE chairman Richard Grasso have been overturned regarding his $187.5 million compensation package. The final outcome?

Grasso will settle the case
NY State will not pursue the case
Grasso lost his reputation, regardless
Not Spitzer's worst decision but up there

Previous Polls

Register for tradersmagazine.com - it's FREE!
	Sign up today and gain immediate access to the TRADERS Magazine Web content! Your FREE member registration entitles you to: FREE e-Newsletters 2,900 searchable articles Online Technology Directories Photo Galleries

Exchanges and ECNs Department

Industry News

SEC Gives Exchanges Room to Be Their Own Bosses

The Securities and Exchange Commission, bowing to pressure from exchanges that say they face greater competition than ever, is proposing to give exchanges more leeway to make quick changes in their markets. The SEC said Wednesday it would allow exchanges to institute a broader range of rule changes without getting prior SEC approval.

NYSE Is Fastest in Turnaround for Illiquid Names, Study Finds

The New York Stock Exchange, widely considered the slowest execution venue in the industry, outshines its competitors when it comes to turnaround times of less active NYSE stocks.

NYSE Bets on Broadcast Tool for Floor Brokers

The New York Stock Exchange, in an attempt to boost the face-to-face interactions that once characterized trading on its floor, quietly rolled out an electronic communication tool for floor brokers last month. Called BlockTalk, the product was designed by the NYSE in collaboration with Micro Design Services, the maker of floor brokers' handheld trading devices, and is available on those handhelds. BlockTalk, ironically, is an electronic tool intended to facilitate human interaction between floor brokers. Traders can broadcast messages indicating their interest in a particular stock to other floor brokers, who can respond via their handhelds and then go on to have an in-person conversation.

More

Articles from Traders Magazine

Sweetening the Pot

The business of listing new exchange-traded funds is in the doldrums and so are Nasdaq's plans to build a competing ETF marketplace. The exchange said last September that when it launched its new service in a month it would be shooting for 100 listings very soon thereafter. So far, it has added just nine to its initial 20. As part of its plan to lure infant ETFs, Nasdaq this spring sweetened the terms of its rebate policy for ETF market makers. Nasdaq recently began paying "designated liquidity providers," those market makers who seed and

SEC Plans To Review Reg NMS

The Securities and Exchange Commission, in the wake of industry criticism, says it will review Regulation NMS. Bob Colby, deputy director, the SEC's Division of Trading and Markets, told conference-goers at the Securities Industry & Financial Markets Association annual market structure conference last month that "we do plan to review [Reg NMS] and consider whether, given the changes in the market, it needs to stay for all time."

Primary Market Still Guides Open

Most traders are filling their customers' orders in New York Stock Exchange-listed securities at the NYSE's opening price-not Nasdaq's. Since it began opening in NYSE stocks last July, Nasdaq OMX so far has gained almost a 5 percent market share at the opening. So when there are two prices to choose from for morning orders that arrive prior to 9:30 a.m., traders have been going where the volume is.

Direct Edge Debuts New Features

Direct Edge ECN has rolled out several new product enhancements aiming to improve trading on its markets. Traders sending hidden orders to Direct Edge's two platforms, EDGA and EDGX, can now opt for a minimum execution quantity. Hidden orders are typically sent by algos that don't want to show their hand, and that want to interact with the liquidity with minimal market impact. The minimum quantity feature allows that to occur, said Bryan Harkins, head of sales and strategy at Direct Edge.

NYSE Specialists Get Break on CAPs

The New York Stock Exchange, as part of a broad-based initiative to shore up specialists' competitiveness, will permit them to trade CAP orders on parity with other orders. Currently, specialists handling CAP, or convert-and-parity, orders for floor brokers must cede any trade to a competing DOT or other agency order at the same price. Under the exchange's proposal, CAP orders will have equal standing with DOT or other agency orders.

NYSE Looks To Expand Floor Role

The New York Stock Exchange, reacting to a decline in the number of floor traders, is proposing that exchange employees be allowed to act as floor officials. The exchange asked the Securities and Exchange Commission for permission to alter its Rule 46, which restricts the role of floor official to exchange members. Under an amendment to the rule, "qualified exchange employees" would be permitted to function as floor officials and governors along with members.