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Strategies & Market Trends : Raptor's Den II -- Ignore unavailable to you. Want to Upgrade?

To: marginmike who wrote (177)	4/17/2003 4:12:56 PM
From: da_cheif™	Read Replies (1) \| Respond to of 3432

lookit this...... By Judith Burns Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--The New York Stock Exchange agreed to last-minute changes that will allow it to offer a new kind of stock-market data known as liquidity quotes. Liquidity quotes will show firm bids and offers for NYSE-listed stocks beyond the best prices, which could help institutional traders quickly buy or sell big blocks of stock. A launch date for liquidity quotes will be announced shortly, said NYSE spokesman Ray Pellecchia. Earlier this month, the Securities and Exchange Commission cleared the way for the NYSE to offer liquidity quotes, provided the NYSE didn't block distribution with other market data. Conditional approval by the SEC required the exchange to modify its contracts with data vendors by April 9. Pellecchia said the modifications were made April 9. Vendor contracts are posted online at www.nysedata.com. "The exchange is pleased with the SEC's approval and has accepted the SEC's conditions regarding the integration of New York Stock Exchange liquidity quotes with other markets' data," Pellecchia said. Critics of the original proposal said the NYSE wanted to package liquidity quotes in a way that would hurt other markets and data vendors. Bloomberg LP said its contract with the NYSE would bar it from including liquidity quotes with other market data or spreadsheets. Bloomberg, a market-data vendor and news service, competes with Dow Jones & Co. (DJ), which publishes this newswire. A company spokeswoman wasn't available to comment. NYSE chairman and chief executive Richard Grasso dismissed Bloomberg's complaints as commercially driven and told the SEC the Big Board should be able to brand its new data product and protect it like any other brand. As part of its brand protection, the NYSE wanted to bar data vendors from enhancing, integrating or consolidating liquidity quotes with other data. The NYSE also sought a "window requirement" that would display liquidity quotes in a separate window on traders' computer screens, or draw a line between its data and other markets' data. The SEC rejected that approach, ruling that the NYSE could offer the quotes only if it changed its vendor contracts to remove restrictions on integrating the new data. Large, institutional traders praised the SEC's decision. "Institutional traders naturally would prefer to design their trading screens themselves, not have the NYSE dictate its appearance," said Joseph Lombard, president of Wave Securities, an institutional broker owned by Chicago-based Archipelago LLC. Lombard questions whether liquidity quotes will be a hit, even with the changes demanded by the SEC. "The market wants to be able to find liquidity. Whether it wants the product the NYSE designed is another question," he said. Others predict a warm welcome for any data showing market depth. Decimal trading, which allows stocks to trade at many price points, makes the best bid and offer less meaningful than it once was, underscoring the need for liquidity quotes, said Cincinnati Stock Exchange chief executive David Colker "We think it's a positive step for the public investor to see the depth of book," said Colker. After their debut, NYSE liquidity quotes will be distributed without delay and NYSE specialists will be bound to honor them, although they aren't required to provide such quotes. Traders say that will be a big improvement over non-firm quotes now available through NYSE's Open Book, which posts limit orders with a 10-second delay. Automatic execution of liquidity quotes will be available as well. "We are all dying to be given decent, honored quotes again," said one independent trader, who asked not to be identified.