Last month, the NYSE successfully migrated the NYSE Equities platform to NYSE Pillar technology. Thanks to a substantial effort from the entire NYSE trading community, the migration went off without a hitch and Pillar, a fully integrated, high throughput, low latency, deterministic, and highly redundant trading system, is now the backbone of one of the most important financial institutions in the world.
Pillar's anticipated benefits are already being realized. In particular, the new "Native Gateway" order entry protocols offer dramatic improvements for members and their clients:
Pillar offers clients significant performance improvements at no additional cost.
To take advantage of Pillar's performance, visit www.nyse.com/pillar for specifications, differences documentation, and assistance in testing and registration. If you do not connect directly to the NYSE, contact your broker to ensure they are utilizing the Pillar Native Gateway technology.
If you would like to learn more about Pillar, listen to our podcast Inside the ICE House, where the technologists that designed Pillar discuss the history of the system and the effort involved in the migration.
Comparing listing market quality across a large number of stocks is best achieved by using a matched sample, using key firm characteristics, such as sector, market cap, price and volume. Our analysis found that NYSE-listed stocks achieve tighter spreads, lower volatility and more accurate open and close auctions than their matched Nasdaq stocks, often by a significant margin.
The eight largest NYSE closing auctions have all occurred since June 2020, driven by growth in index rebalance events. We’ve previously studied the market impact of large auction orders and more recently highlighted the significant additional liquidity opportunities at the close. With significant index rebalances on the horizon, we now focus on volume dynamics in the days before and after large index rebalances, finding additional liquidity available in the market.
To help enable a data-driven, fact-based discussion around price improvement activity, NYSE has published a study quantifying the aggregate price improvement achieved by US equity investors in H1 2022 and analyzing its composition. Our study is based on public TAQ data and evaluates every standard trade in the first two quarters against the prevailing NBBO at that time.