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Fidessa's Steve Grob has written a response to Marcus Ferber writing to ESMA condemning periodic auctions. The blog strongly criticizes Ferber's approach, and looks at the problems behind the "lit is good and dark is bad" attitude.

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October 19, 2006

NYSE Rule Helps Floor Brokers

By Gregory Bresiger

New York Stock Exchange's crowd system should be changed so that participants can better monitor five panels, according to a new NYSE regulatory filing.

Big Board officials, in a proposal, want to re-define the boundaries under its hybrid market for each trading room of the floor. This would allow brokers to see and hear all business at each post/panel.

"The Crowds will be created in such a way that when a Floor Broker is standing in a Crowd, the Floor broker will generally be able to see and hear the business conducted at each post/panel within that Crowd," the NYSE wrote.

The crowd, under Rule 70.20(f), is now defined as "five contiguous panels at any one post where securities are traded."

But the problem with the current system is that it doesn't promote maximum interaction, the NYSE said. Some traders are positioned to see what is going on at the next panel. Others aren't. So exchange officials wrote they would re-define the crowd. Crowds will be an area in which members can "see and hear the business conducted at a group of panels." Floor brokers have long supported this change to hybrid.