The NYSE completed the migration of its five equities markets to the best-in-class Pillar technology platform in late 2019. Then, shortly thereafter, in the early days of the Covid-19 pandemic, Pillar faced its greatest test. Despite historic levels of market volatility, Pillar technology was fast, reliable, and consistent, maintaining low latency and deterministic performance.
This morning, NYSE’s affiliate SIAC upgraded the Consolidated Tape Association’s (CTA) equity trade and quote data feeds to the same Pillar technology. SIAC is the Securities Information Processor (SIP) for CTA and the Options Price Reporting Authority (OPRA).
Pillar now brings superior speed and resiliency to SIAC’s processing of the CTA consolidated trade and quote data feeds for equity securities listed on NYSE (Tape A) and Cboe, NYSE Arca, and NYSE American (Tape B). For example, we expect Pillar to reduce CTA quote consolidation processing time by more than two-thirds.
Latency shown in microseconds; 'Current' based on May 2020 metrics at CTAPlan.com, 'Pillar' observed in production 'shadow' environment on July 9, 2020
Some of the many improvements the upgrade to Pillar will bring CTA SIP subscribers include:
Source: Various trader notes
SIAC’s Pillar launch for the CTA SIP is a major milestone, underscoring the commitment to continuous innovation to improve the customer experience, and follows SIAC’s June 2020 launch of the enhanced SIP network and improved message latency for CTA and OPRA data recipients. These significant SIP systems improvements have been delivered without any new cost to the industry.
The upgrade also marks the latest step in Pillar migration, with SIAC’s processing of the OPRA data feed planned to move to Pillar in the first half of 2021. Looking ahead, NYSE’s two options exchanges, NYSE American Options and NYSE Arca Options, will upgrade to Pillar as well.
Further information can be found at www.ctaplan.com.
Activity in NYSE’s Retail Price Improvement Program for stocks not listed on the NYSE has shown strong growth since its launch last December. Tape B activity recently peaked at more than two million shares.
To enhance visibility and understanding of the Closing Auction process, NYSE has introduced a graphical interface with a trailing three months of closing imbalance feed historical data for the 1,000 largest daily Closing Auctions.
NYSE research reviewed option usage trends to end 2022 and start 2023: 2022 options market activity was generally aligned with equity market moves. Average monthly put-call volume ratio in 2022 was higher than 2021 but declined sharply at beginning of 2023. In 2022, floor traded a higher put premium relative to call but a much lower put premium in 2023. Moreover, electronic trading saw more activity in SPY and QQQ, while floor trading saw most activity in HYG. Also, floor trading had a significantly higher put-call ratio than electronic trading for days around FOMC meetings and CPI announcements over most of this period.