(December 2 – 18:15 ET) – The
NYSE voted a significant change
today that forecasts a revolution
in the business of stock trading
the U.S.
The NYSE has voted to rescind
Rule 390, which effectively
prevented NYSE members from trading
Big Board stocks through other
trading systems. The vote will
allow brokerages to trade their
blue chips wherever they find
the best prices.
But the big change may be yet to
come. NYSE chair Richard Grasso
said the NYSE will look at altering
the way the intra-market trading
system operates. At stake is a
full interface between Nasdaq and
the NYSE – something that would
create a huge liquidity pool and
allow best execution across all
orders.
The ECNs – electronic trading
networks – are also eager to gain
access to the NYSE floor. They
would likely have to adhere to
its trading rules. As the NYSE
moves toward that, it wants the
Securities and Exchange Commission
to contemplate a rule that would
mandate best execution within the
inter-market system.
Meanwhile, much of the
excitement that surrounded the
possibility of an initial public offering of the
NYSE itself has died down. Grasso
now suggests that an IPO might
happen in the fourth quarter of
2000, or perhaps even the first
quarter of 2001.
-IE Staff