This is the first time the NYSE is offering automatic trade execution within the auction market model. A step beyond traditional electronic communication networks (ECN), NYSE Direct+ orders are executed against the full depth and liquidity of the NYSE market and are exposed to all market interests.
NYSE Direct+ orders are designated as NYSE Direct+ by member firms adding the indicator NX to the SuperDot order format. The auto execution feature is activated when the limit order's price is equal to or better than the published bid or offer. The order is executed and the transaction report is returned directly to the firm via SuperDot, with verification of an NYSE Direct+ execution. Trades are reported to the Consolidated Tape with an "E" identifier noting the automatic execution.
When market conditions prohibit automatic execution, remaining order quantities are placed on the NYSE Display Book for processing along with other regular orders.
Accessible from the first quote of the trading day to a minute prior to the close of the market, NYSE Direct+ is available when the bid and/or offer is more than 100 shares. For added investor protection, the service is unavailable during a trading halt or non-firm quote.
The Exchange plans to expand the pilot to an additional 15 companies (18 issues) on Dec. 28: Gateway (NYSE: GTW); Anadarko Petroleum (NYSE: APC); FedEx (NYSE: FDX); Forest City Enterprises (NYSE: FCE A, FCE B); Hughes Supply (NYSE: HUG); MSC Software (NYSE: MNS); Sears Roebuck (NYSE: S, SRF, SRH); Franklin Resources (NYSE: BEN); Kemper Strategic Municipal Income Trust (NYSE: KSM); Lone Star Technologies (NYSE: LSS); Groupe Danone (NYSE: DA); High Yield Plus Fund (NYSE: HYP); Newhall Land and Farming (NYSE: NHL); Transamerica Income Shares (NYSE: TAI); and Tejon Ranch (NYSE: TRC).
Full NYSE Direct+ implementation is planned for early February 2001 following the Exchange's full conversion to decimal pricing, which is targeted for Jan. 29, 2001.
With technology at its core, NYSE Direct+ and the portfolio of Network NYSE market-information products and order-execution services offer a new dimension in customer choice by providing new and exciting ways for customers to access the Exchange's unparalleled liquidity and extensive information resources.
The NYSE is the world's premier equities market, listing 3,000 of the world's best companies whose total global market capitalization value is $18 trillion. The NYSE's non-U.S. listed companies, which number 435 from 51 countries, count for more than $6 trillion in the total global market capitalization. NYSE-listed companies range from "blue chip," to many of the world's leading technology companies, to high-growth enterprises. Among the advantages the NYSE offers these companies are access to the world's largest pool of capital and outstanding liquidity and transparency, the opportunity to significantly expand and diversify a company's shareholder base, greater global visibility, and extensive research coverage. A leader in innovative trading capabilities and systems, the NYSE employs the most advanced technology to deliver fast, efficient, reliable and cost-effective trade executions.
