NYSE D-Quote Trading Update / COVID-19
May 1, 2020
Mischler Client Notification:
We all know of the impact the COVID-19 pandemic has had on our communities, our country. Many of us have been directly affected or h. Throughout the midst of this, our financial markets have been confronted, yet weathered unheralded volatility while the strength of the US economy has been challenged.
Despite these historic events, and consistent with prior periods of crisis, the NYSE and the respective trading floor members have proven uniquely resilient. The exchange leadership has preserved the integrity of the US equity trading markets, the price discovery process, while the DMMs have continuously maintained the ability for investors to transact seamlessly in NYSE-listed company shares.
At the apex of the COVID pandemic in New York City, NYSE leadership was compelled to close the physical trading floor for the safety of the several hundred staff and floor members. This temporary closure had a direct impact on the distribution of D-Quote information and market-on-close order imbalance updates, which have historically been disseminated every 30 minutes beginning at 2.30pm ET, with final order imbalance notification at 3:50pm. The shutdown resulted in a single D-Quote notification which has taken place at 3:50 pm during these recent several weeks.
UPDATE RE: NYSE D-QUOTE / MARKET ON CLOSE ORDER IMBALANCE NOTIFICATIONS
AND TRADING FLOOR RE-OPENING.
EFFECTIVE MAY 6, NYSE CLOSING IMBALANCES WILL BE AVAILABLE TO NYSE MEMBERS STARTING AT 3 PM EST.
Clients of Mischler Financial Group’s equity trading desk are invited to contact us to arrange for D-QUOTE market data and for further information re: options execution capabilities.
Key features and benefits of D-Orders:
- Closing D Orders represent approximately 35% of the NYSE Closing auction – nearly double the Limit-On-Close (LOC) volume
- D Orders are designed to give floor brokers the most flexibility for handling client orders for the closing auction
- D Order is an approved NYSE Order Type by the SEC
- D Orders can only be entered by NYSE Floor Brokers and requires their interaction with arriving client orders
- Floor Brokers can enter 200 D Orders at once – known as Group Entry in the NYSE Hand Held Device
- Availability for clients to route both limit orders and market orders to floor brokers for the closing auction
- Can be entered on either side of the market – even after the 3:50pm Regulatory imbalance
- Entry time up until 3:59:50pm vs the 3:50pm MOC/LOC requirement
- Can be canceled up until 3:59:50pm
- Appears in the NYSE Closing Imbalance Feed at 3:55:00pm
- Early – Mid – Late entry of D Orders pricing model for order entry
MAY 18: NYSE TRADING FLOOR TO RE-OPEN*.
*Subject to NYC target date for ‘gradual re-opening of the city. NYSE plans for re-opening anticipate a gradual phase-in over a period of several weeks that will limit the number of personnel that can access the floor and will require screening at facility entrances and use of face masks.
MAY 29. Month-end MSCI Index Re-balance. In view of the crucial role that NYSE DMMs play in the course of disseminating information and helping to reduce volatility as institutional investment managers administer month-end portfolio rebalances, the NYSE remains optimistic that near-normal floor operations will be in place at this time.
For those who are students of market structure and the distinctions between the NYSE and other exchanges, the following article highlights some key contrasts and the value add that human capital and advanced trading technology bring in the course of transacting NYSE-listed equities : https://www.nyse.com/article/stocks-trade-better-on-nyse
