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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (3111)	10/16/2001 1:19:34 PM
From: ahhaha	Respond to of 24758

Does a transaction like this show up on the tape? Not necessarily. The rule reads that an "off board trade" must go to the floor for review. You can find this concept in the rule statements I posted. The idea is that if two entities who would like to transact wish to use the NYSE and its attendant clearance mechanism, they must negotiate a price between them and then inform the specialist in order to make sure the agreed upon price is reasonable with respect to the going B/A. Moreover, maybe one party needs the specialist and floor brokers to make up a part of one side because that side doesn't have the ability to post the funds alone. Of course, the two parties don't need the NYSE or any exchange to engage in a transaction. It is literally true that if one party took stock certificates and signed them over to another party and the other party tendered say a check or other equitable form of payment, the transaction is fair, proper, and legal. No volume due to this transaction occurs in the NYSE data and so doesn't appear on the tape. Also, only the portion of a negotiated mixed transaction that goes to the floor makes it to the tape. This was evident in the DIS transaction you mentioned. In the past the portion that didn't go to the floor still had to be stated on the non-consolidated tape, but didn't have to state the exact price of that portion. Given the high volume and the constraints that has been imposed on reporting I'm not sure that this latter condition still holds, but the information is still obtainable, I believe.