If you can’t beat them – join them.
That’s what the executives at the New York Stock Exchange must be thinking as the exchange founded under a Buttonwood tree has decided to rename its NYSE MKT Exchangethe NYSE American and introduce a 350-microsecond delay on orders there, according to a statement Wednesday.
According to a release on the NYSE website, NYSE American will be a first-of-its-kind exchange that brings the strengths of NYSEs features, such as electronic DMMs with quoting obligations assigned to each NYSE American listed company. NYSE American will also file rules with the SEC for new features that promote midpoint trading, including a350 microsecond delayupon order entry, proprietary data and outbound routing, as well as aDiscretionary Pegged Order.
Said Tom Farley, NYSE President: AsU.S.equity markets have become increasingly complex due to fragmentation and dark pools, we are committed to providing listed companies, investors and market participants with more choice on how they list and trade with us in a way that best meets their needs. As we enter our 225thyear as the global leader in trading and listings, we are continually evolving our markets to serve our customers in a very dynamic marketplace.
Farley continued, As we move through 2017 and begin offering these enhancements, NYSE Group will ultimately operate four distinct exchanges for issuers and investors, each with its own market model. We recognize certain market models are appropriate for ETFs or less liquid securities, and we are excited to provide our customers with more choice in how they list, invest and trade.
The Chicago Stock Exchange, as previously reported by Traders Magazine, has come up with its own take on the speed bump that would affect only specific orders, Also, Nasdaq has said it is exploring the use of its ELO order type which also employs a delay.
