NYSE 1st U.S. Equities Market To Submit All Trading Data Real-Time For Clearance, Settlement - Move To Further Streamline Trade Execution And Comparison Processes

The New York Stock Exchange today became the first U.S. equities market to submit all comparison data for all its listed securities real-time, message-by-message, for clearance and settlement.

This is an important step toward straight-through-processing, the seamless integration of systems and processes to fully automate the trade cycle, from order entry to settlement. Exchange customers will benefit from reduced financial exposure and greater flexibility in contingency planning.

"Effective today, all NYSE system orders are entered, executed, reported and compared real-time and sent immediately to NSCC (National Securities Clearing Corp.) for clearance," said NYSE Vice President Louis Pastina. "As soon as an order is executed, the NYSE's systems instantly compare the data related to both sides of the trade - initiator and counter-party. Within seconds, the data are compared and submitted on a message-by-message basis for clearance." Real-time submission decreases settlement risk and financial exposure because the trade data and records are passed straight back to the participants, enabling them to correct any mistakes immediately. This also provides additional recoverability: the number of executed but unsubmitted trades left to unravel in case of an emergency is minimized.

Seamless connectivity also further improves the efficiency that is required as trading volume continues to increase. In the past two years, the number of comparison sides* processed by the NYSE has increased to more than 9 million sides a day - with a peak of 12.4 million - compared with 3 million sides a day in 2000.

NYSE computer infrastructure and architecture utilizing new innovative messaging technologies enabled the change.

*A comparison side represents one participant in a trade. For example, a trade in which one seller sells to three buyers represents four sides.