Tuesday, June 30, 2009

The NYSE Responds to Zero Hedge

Zero Hedge is happy to present readers with the NYSE's response to the earlier post on dropping program trading data. I would love to see clarity on what it is that the NYSE classifies "account type indicator data" as opposed to old reliable DPTR. I sure hope this does not mean the source will be the actual account as opposed to the Exchange sourcing the data. I imagine there will be significant statistical data adjustment post fact.

Furthermore, in allowing the SLP program to go into effect on an expedited basis, the SEC said it did so because the program did not affect the protection of investors and impose any significant burden on competition. See page 2 of the linked doc.
"The Exchange believes that this rebate program will encourage the additional utilization of, and interaction with, the NYSE and provide customers with the premier venue for price discovery, liquidity, competitive quotes and price improvement."
Why not suggest people submit comments to the SEC on whether NYSE's ceasing data disclosure is consistent with the securities rules and the basis of the SEC's expedited approval?
Solicitation of Comments

Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods:

Electronic Comments
• Use the Commission’s Internet comment form (http://www.sec.gov/rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File Number SR–NYSE–2008–108 on the subject line.

Paper Comments
• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, Station Place, 100 F Street, NE., Washington, DC 20549–1090. All submissions should refer to File Number SR–NYSE–2008–108. This file number should be included on the subject line if e-mail is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for inspection and copying in the Commission’s Public Reference Room, 100 F Street, NE., Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of such filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make publicly available. All submissions should refer to File Number SR–NYSE–2008–108 and should be submitted on or before November 26, 2008.
Regardless, I will, of course, present whatever data is available for as long as it is available.


Tyler -- I'm with NYSE corporate communications and wanted to let you know that NYSE is not eliminating the weekly report; we're just changing the source of the data to eliminate duplication. As the Information Memo you cite notes:
The Exchange further notes that it will use the existing account type indicator data – which captures program trade information for those orders sent to and executed on the Exchange – to report to the Commission on a weekly basis the program trading statistics for portions of program trades executed on the Exchange. Accordingly, beginning on July 23, 2009, the Exchange will provide the Commission with its weekly statistics on program trading based on account type indicator data rather than DPTR data. Similarly, at the same time, the weekly statistics regarding program trades that the Exchange provides to media outlets will also be derived from account type indicator data rather than the DPTR.
Thanks. -- Ray Sphere: Related Content
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