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Strategies & Market Trends : From the Trading Desk

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To: Susan Saline who wrote (3163)	6/5/1998 11:23:00 AM
From: spinynorman1323	Read Replies (1) of 4969

Sue, It was a Rule-127 trade report. Simply put it is a block trade. I recall the NYSE generally considers 10,000 or more shares a block. There must be certain intricacies involved because many trades over 10k shares occur that aren't reported as 127s. Maybe Steve knows more on those details. Here is an exchange-speak item on R-127/block trade reporting.... _______________ Block Positioning Rule 127. (a) A member organization that receives an order or orders for the purchase or sale of a block of stock, which may not readily be absorbed by the market, should explore in depth the market on the Floor. Unless professional judgment dictates otherwise, this should include checking the specialist to ascertain the extent of the specialist's interest in participating at an indicated price or prices. The specialist should maintain the same depth and normal variations between sales as he or she would had he or she not learned of the block. (b) A member who has a block of stock which he or she intends to cross at a specific clean-up price outside the current quotation should, when ready to effect the cross, proceed in the manner described below. The member should inform the specialist of his or her intention to cross a block at a specific price. There should not be any intervening trades by the member representing the block order between the time the member informs the specialist of his or her intention and the trade or trades to clean-up the block. There is one exception to this requirement. The member may trade with the exposed bid or offer if the clean-up price is [one-eighth of a point] the minimum variation outside the current quotation and the member is holding only agency orders on both sides of the market. _______________ BTW, although I don't know the specifics, AMEX has a similar reporting vehicle in Rule-155. Hope that helped. Mark

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