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Robert Schuessler
Traders Magazine Online News

A Smarter Monkey

In this contributed piece, TIM noted that some traders do better than others when using data that has been run through certain analysis - that is, have used some form of machine learning to assist them.

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In his first public speech, SEC Chair Jay Clayton deviated from his prepared remarks and offered his own "off the cuff" comments on market issues. Do you like this change of pace?




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January 3, 2006

NYSE-Listed Volume Expected to Skyrocket

By Michael Scotti

Gentlemen, start your OMSs. The volume of shares traded in New York Stock Exchange listed securities is expected to double or quadruple once the Big Board goes electronic with its hybrid model in June 2006, according to industry pros. Many believe that speed, as well as the greater certainty of executing and canceling orders, will bring in more volume from professional traders.

Tom Troy, executive vice president of Bear Wagner Specialists, told an audience at the Security Traders Association's annual conference that he wouldn't be surprised if volumes increased anywhere from two to four times in NYSE-listed securities. That would occur within two years of the NYSE's move to auto-ex, he said.

Troy based his prediction on events in Europe in the 1990s. Exchanges there went fully electronic in the mid- to late-1990s. The sweep function of the hybrid market will also force floor brokers to represent more of their orders in the book, Troy told Traders Magazine, whether those orders are displayed or in reserve; otherwise, they face the risk of missing trades.

"The auto-ex function will force traders to make decisions," Troy said.

Matt Andresen, president of Citadel Execution Services, said he expects listed volume to double within six months of hybrid's launch.

After that, he expects "a considerable ramp up from there."