BA 543 Mike Carrigg Trading on the NYSE and NASDAQ Exchanges Overview Timeline Similarities and Differences Trading Mechanisms Other Trading Methods History NYSE 1792 Founded 2000 Rule 390 Eliminated 2005 Hybrid Market Launch 2006 Acquired Archipelago 2006 NYSE made Public 2007 Euronext Merger NASDAQ 1971 Founded 1978 Amex Merger 1987 Small Order Execution System SOES 2002 SuperMontage 2005 Acquired Instanet 2007 Acquired PHLX Market Similarities Today NYSE NASDAQ Ownership Public for profit Market Type Secondary markets Quote driven Continuous market aspects Hybrid structure Technical Price reporting regulation price variation Market Differences Today NYSE Market NASDAQ Order driven market Auction type Dealer quote driven market Market makers No physical location Specialists system Physical Location Mechanisms SuperDOT Broker dealer Commission broker Floor Brokers Registered Traders Market Mechanisms SOES and SuperMontage NMM Small Cap Market Trading at NYSE Originally You Firm Broker Floor Broker Execution Specialist agents principals auction system Open close with call market continuous normally Now You Firm Broker Floor Broker SuperDOT Execution Specialists broker dealers commission brokers registered traders Trading at NYSE Role of the Specialist NYSE listed stock assigned to a specialist Match bid ask prices for execution Balance for liquidity by holding shares to maintain market equilibrium Establish a fair price for stocks at day start Can also execute stop orders Trading at NASDAQ Originally You Broker Market Maker Execution Purely quote driven fragmented Now Market Maker SOES and SuperMontage PHLX physical floor space NMM Outstanding of 1 1 mil at 1 share Small Cap those not meeting NMM Trading at NASDAQ Role of the Market Makers Assigned to stock by average daily volume Once order is received sells from inventory or locates an offsetting order Ensure a buyer for every sell order and a seller for every buy order Enhance market liquidity and long term market growth Other Trading Mechanisms ECN Electronic Communication Network Off exchange brokers connecting buyers and sellers Rule 390 ATS Alternative trading System Direct trading without the use of a broker ITS Intermarket Trading System Allows traders to move to other exchanges for best price Algorithmic Trading Splits large orders into smaller ones NYSE trade size reduction from 2000 to 330 Questions Resources Investopedia Staff Electronic Trading Tutorial Investopedia 2010 Web 15 Apr 2011 http www investopedia com university electronictrading t rading1 asp Investopedia Staff The NYSE and NASDAQ How They Work Investopedia Web 15 Apr 2011 http www investopedia com articles basics 03 103103 as p NASDAQ Web 16 Apr 2011 http www nasdaq com NYSE Web 16 Apr 2011 http www nyse com Image Sources NASDAQ com NYSE com dealbreaker com ceoworld biz BA 543 Mike Carrigg Trading on the NYSE and NASDAQ Exchanges
View Full Document
![High Yield Bonds [ Junk Bonds ] and Their History](https://media.gradebuddy.com/documents/1727179/2546efe0-ea63-48af-99b9-6a7c5560bba2.png)
Unlocking...