The October effect is a perceived market anomaly that stocks tend to decline during the month of October.

NYSE Research examines closing auction liquidity in days around index rebalance events. Most stocks have larger auctions before and after major rebalance events, but the effect is most pronounced for stocks that have large rebalance auctions. For stocks most impacted by both quarterly and MSCI rebalance events, closing auction volumes show material increase for 3 days before and 3 days after the rebalance itself.

NYSE Senior Market Strategist, Michael Reinking, offers his weekly update on the market and a look to key upcoming catalysts.

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. The NYSE research team 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.

In this report, NYSE Research quantifies the aggregate price improvement achieved by US equity investors in the first half of 2021. We find that just 12% of total price improvement comes from trades at sub-penny price increments, and the potential upside from harmonizing trading increments comes to roughly $1.8bn per year.

We can all use a refresher from time to time, and Caroline Woods is here to explain how you may be able to make a more informed decision about the value of a stock you’re looking to buy by using simple math. Learn how a price earnings ratio works in the latest NYSE Briefs.

Kevin Tyrrell and John Fischer discuss recent and upcoming stock splits and how equities and options trading may be affected.