An NYSE Scalper's Tale - A Trader's Diary

Friday, October 27, 2006

Delayed In Denver...

I'm back! Well - looks like I didn't get to trade on Friday afterall...

We had a flight back to Toronto via Denver, but getting out of Las Vegas, our flight was delayed because of all the snow that fell overnight in Denver and when we finally arrived in Denver, our connecting flight was cancelled.

We finally were able to get on a later flight, but by the time we got back home, it was well past 2AM.

I know from experience that I wouldn't be in good condition to trade, so I took today off to rest up a bit (it was an extremely long and uncomfortable day yesterday...).

That being said, hope you all have a good weekend and I hope you folks out there had some good trading this week!


  • Welcome back!

    In a lot of your post, you mentioned about putting too much trust in the level II quotes. I was wondering if the level ii quotes for NYSE is the same as NYSE open book.

    I got the following off the NYSE web site.

    NYSE OpenBook + NYSE Quotes

    = Complete Liquidity Picture

    Beginning November 1, 2006, the NYSE will offer NYSE Best Quotes (best bid/ask quotations) for all NYSE-traded securities as part of the NYSE OpenBook product offering. For no additional fees, customers of NYSE OpenBook can choose to receive the NYSE Best Quote directly in a faster, more streamlined datafeed from the NYSE rather than through the Consolidated Quotation System (CQS). This means that firms will be provided a complete liquidity picture containing both depth-of-book and total market quote interest directly and more efficiently than ever before.

    Subscribers receiving NYSE OpenBook information from market data vendors should check with their vendor regarding availability.

    *Click here to view our Product Announcement

    NYSE Quote Specifications

    By Anonymous Anonymous, at October 28, 2006 8:03 a.m.  

  • Anon@8:03AM,

    Thanks for your comments!

    When I mention Level II quotes, I am looking at the NYSE open book + quotes from the various ECNs (Arca, Island, Brut, etc). With the new changes the NYSE is implementing, they are trying to avoid having crossed Level II (where you have shares at the bid that are higher than the best offer or when you have an offer at a price lower than the best bid).

    These changes are definitely going to change the "feel" of how NYSE stocks move (no longer should there be delays and crossed books), so hopefully I can adjust accordingly.

    I wish you the best of luck and happy trading!

    By Blogger J.C., at October 28, 2006 3:22 p.m.  

  • Nice to have you back!

    The way I understand NYSE stocks is such that, all the orders on the NYSE open book and quotes from the various ECNs is not as reliable as the level II quotes on the NASDAQ.

    That is because NYSE still has traders on the floor who may hold limit orders with them and not put them on the NYSE open book or the ECNs.

    Can you please comment on the above.

    Thank you.

    By Anonymous Anonymous, at October 29, 2006 10:17 a.m.  

  • Anon@10:17AM,

    Thanks for your comments and it's good to be back! I'm not 100% sure about how the NASDAQ works and what the market makers can or cannot do, but I can tell you that you are correct with regards to the floor traders. On the NYSE, you have to worry about two things - whether those on the floor have big orders AND those fake sizes that appear on the Level II.

    With the new Hybrid system coming in, I'm not sure what impact it will have on these two things - only time will tell.

    Good luck and happy trading!

    By Blogger J.C., at October 29, 2006 5:12 p.m.  

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