The NYSE completed rollout of the first of two phases of its newly approved next-generation market model. This set of transformative changes begins the transition to Designated Market Maker (DMM) for the Exchange’s current primary dealers known as Specialists.
In addition, with this first phase completed, all NYSE securities are now eligible to receive the newest order type available at the NYSE – Dark Reserves. These order types are completely hidden to the DMM but are available to trade with all electronic order flow. In addition to the Dark Reserve Order, The NYSE has introduced a new set of priority rules for customers who set the best bid or offer and has introduced enhanced tools for floor brokers, creating several additional execution options for clients.
The Exchange has already begun the rollout of its second phase of the NMM and is aiming to complete that rollout in early December. The second phase provides DMMs with new electronic tools to provide enhanced liquidity, while eliminating advance electronic access to the Order Book.
The completion of the next-generation launch and introduction of the previously mentioned new products and enhancements, combined with a revised rule set designed to maximize the NYSE's market quality, will ensure competitiveness in today's increasingly electronic trading environment.
For more information on these changes please review the customer summary notice on the next-generation model, as well as the full SEC Rule Filings, both attached below.
NYSE Next Generation Model
Completed Phased Securities Rollout
NYSE Rule Filing # SR-NYSE-2008-46 Amendment No. 1
NYSE Rule Filing # SR-NYSE-2008-46 Amendment No. 2
NYSE Rule Filing # SR-NYSE-2008-46 Amendment No. 3
Category: Operations, Product News, Traders
