This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
1 Under the definition of the original hybrid, a floor broker who entered an order into the reserve book could not physically move more than five panels away from the panel at which he or she had entered an order. Failure to comply with this would result in an immediate order cancellation. The panels in question are the overhead electronic monitors that hang from the various trading posts on the NYSE floor. Each panel accounts for a group of stocks handled by a specialist. A later revision subsequently eliminated this “‘five-contiguous panel”’ definition of the “‘crowd.”’ The new definition instead divided each trading room of the floor into zones that established the boundaries of the crowd. Indeed, Kinney in her response at the conference, noted that the five-panel rule was then being re-examined.
- 2.
2 At the time of the conference, Mr. Fortunato was Director of U.S. Equity Sales and Trading at Nomura Securities International.
- 3.
3 D-Quotes are “‘discretionary”’ e-Quotes, which are electronic quotes used by brokers placing trading interest on a Display Book. Bids and offers are entered on hand-held devices at different prices in the crowd. D-Quotes may trade with any size contra interest; the floor broker may also establish a minimum and maximum size parameter, which dictates that the d-Quote is not permitted to trade with an order within that range, including at the minimum and maximum size established.
- 4.
4 Form S-1 is the document used to register securities with the SEC.
- 5.
5 The NYSE Group became the parent of the NYSE and Archipelago in March 2006 when the merger of both entities was completed. On June 30, 2006, NYSE Group announced new transaction-pricing changes for NYSE-listed equities and NYSE Arca traded options, effective August 1, 2006. This is what Catherine Kinney is referring to here. Prior to the merger, trading fees on the NYSE were paid by member organizations based on their level of trading activity. For example, fees were assessed on a per share basis in equity securities. These fees, which varied based on the size and type of trade, were charged on all transaction that occurred on the NYSE.
- 6.
6 In 2005, the Pacific Exchange (PCX) was acquired by ArcaEx owner, Archipelago Holdings, which, in turn, was bought by the NYSE. As noted, in March 2006 the merger of the NYSE and Archipelago was completed when they became part of the NYSE Group. In late May 2006, soon after this conference, NYSE Group made a bid for Paris-based Euronext. In June 2006, NYSE Group announced it was buying Euronext in a $10 billion cash and shares offer. Finally, on April 2007, in ceremonies on both sides of the Atlantic, NYSE’s takeover of Euronext – and the creation of NYSE Euronext, as the merged company is known – was consummated.
- 7.
7 The speaker is referring to the short sale “‘uptick rule”’ which required that stocks could only be sold short in an uptick. Arca had been exempt from the uptick rule. As part of the NYSE Group, the renamed NYSE Arca observed the uptick on the NYSE on securities not exempted. The SEC later voted to eliminate the short sale tick test, or “‘uptick rule”’ 17 CFR 240.10a-1 in all equity securities. Effective Friday, July 6, 2007, short sales on all securities were permitted on an up, down, or zero tick. (Back in July 2004, the SEC established a one-year pilot that temporarily suspended the tick test and short sale price test on any exchange or national securities association in certain securities. The agency later concluded that the uptick rule was no longer needed).
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2008 Springer Science+Business Media, LLC
About this paper
Cite this paper
Kinney, C., Schwartz, R. (2008). Dialog with Catherine Kinney . In: Schwartz, R.A., Colaninno, A., Byrne, J.A. (eds) Competition in a Consolidating Environment. Zicklin School of Business Financial Markets Series. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-75943-2_7
Download citation
DOI: https://doi.org/10.1007/978-0-387-75943-2_7
Published:
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-387-75942-5
Online ISBN: 978-0-387-75943-2
eBook Packages: Business and EconomicsEconomics and Finance (R0)