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“NYSE floor brokers continue to be an important resource for their customers,” said Michael Rutigliano, Vice President-Broker Liaison. “These new tools will enable brokers to seamlessly blend from their hand-held devices, the high-tech functionality of speed, automation and anonymity, with the high-touch benefits of discovery, price improvement and accessing block-sized liquidity.”
The NYSE last week began introducing algorithmic trading capabilities for floor brokers, and last month rolled out BlockTalkSM, which assists brokers with finding the “contra side” for block-sized orders.
Offering NYSE Customers the Competitive Benefits of Algorithmic Speed and Strategies
In the coming weeks, the NYSE will gradually roll out new, algorithmic trading capabilities for floor brokers. Brokers will have the ability to route all or part of a customer order to an external algo engine directly from their hand-held order-management device. In collaboration with floor brokers, Pragma Financial Systems has engineered and provides a suite of sophisticated, high-performance algorithmic strategies designed specifically for the NYSE point of sale.
"We are happy to have the opportunity to partner with the NYSE, and to provide its floor brokers with execution algorithms," said David Mechner, president at Pragma Financial Systems. "We worked closely with NYSE to customize our platform to meet the needs of the floor broker community, and I think we've succeeded in developing a unique offering that will provide tremendous value for its users."
All algo strategies will trade on parity, providing the ability to match on every trade. The algos are customizable and enable brokers to use their current execution and quoting strategies simultaneously. All strategies will compete with and are benchmarked to the National Best Bid and Offer and are Regulation NMS compliant.
The ease of functionality and speed of strategy delivery complement the sophistication and competitive capabilities of the algorithms. The result is a high-tech, high-touch combination of a robust, high-performance platform, coupled with the insight, accountability and value difference only a floor broker can provide.
Increasing the NYSE‘s Leadership in Block Trading
Last month the NYSE introduced BlockTalkSM to the floor broker community. Designed and developed by Micro Design Services, LLC in cooperation with floor brokers, this real-time messaging system is a new technology feature on the brokers’ hand-held order-management devices that enables floor brokers to discreetly search for deep liquidity by broadcasting and subscribing to specific stocks in which they have large interest. These broker interest alert messages contain no specific order information so customers may benefit from a discovery process in a safe environment free of price impact, information leakage or intermediation.
"We are very pleased to be able to work closely with the NYSE and the floor community in providing tools that improve block trading in today's overly fragmented market. BlockTalk will benefit traders by leveraging the intrinsic benefits of the negotiation model," said John Petschauer, CEO of
With every floor broker currently enabled to use BlockTalk, approximately 350 broker hand-held devices are electronically “listening” for broker interest alerts. Customers have already benefited from this newfound ability to locate and access block liquidity that is not accessible electronically.
Use of BlockTalk is helping the NYSE extend its leadership in the execution of block-sized trades. In June, the NYSE executed 502 million shares daily in client buy and sell blocks, representing 17 percent of NYSE volume and 13 times Nasdaq’s block volume in NYSE-listed issues. The average order size on an NYSE floor broker’s hand-held device was approximately 30,000 shares. In June, 95 NYSE stocks had 40 percent or more of their volume in block trades, and an additional 188 had 30 percent or more.
About NYSE Euronext
NYSE Euronext (NYX) operates the world’s leading and most liquid exchange group, and seeks to provide the highest levels of quality, customer choice and innovation. Its family of exchanges, located in six countries, includes the New York Stock Exchange, the world's largest cash equities market; Euronext, the Eurozone's largest cash equities market; Liffe, Europe's leading derivatives exchange by value of trading; and NYSE Arca Options, one of the fastest growing U.S. options trading platforms. NYSE Euronext offers a diverse array of financial products and services for issuers, investors and financial institutions in cash equities, options and derivatives, ETFs, bonds, market data, and commercial technology solutions. As the world’s largest exchange group by number of listings and market capitalization, NYSE Euronext is home to nearly 4,700 listed companies representing a combined $26.7 / 17.1€ trillion (as of June 30, 2008) in total global market capitalization, more than four times that of any other exchange group. NYSE Euronext's equity exchanges transact an average daily trading value of approximately $157.0 /102.7€ billion (as of
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning NYSE Euronext’s plans, objectives, expectations and intentions and other statements that are not historical or current facts. Forward-looking statements are based on NYSE Euronext’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause NYSE Euronext’s results to differ materially from current expectations include, but are not limited to: NYSE Euronext’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Euronext’s reference document for 2007 (“document de référence”) filed with the French Autorité des Marchés Financiers (Registered on May 15, 2008 under No. R. 08-054), 2007 Annual Report on Form 10-K and other periodic reports filed with the U.S. Securities and Exchange Commission or the French Autorité des Marchés Financiers. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Euronext that the projections will prove to be correct. This press release speaks only as of this date. NYSE Euronext disclaims any duty to update the information herein.
About Pragma Financial Systems LLC (www.pragmafs.com)
New York City-based Pragma Financial Systems LLC, founded in 2002, is a leading developer of quantitative financial systems, providing optimal execution, algorithmic trading, optimal crossing, portfolio construction, and risk management to brokers, hedge funds and traditional asset managers.
About Micro Design Services, LLC
Micro Design Services, LLC (
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