Why is NYSE Floor Broker’s Order Parity Great For Some Day Traders?
By: Guy Gentile
NYSE floor brokers have been picking up order flow from day traders due to order parity. The NYSE and NYSE Amex are the only US stock exchanges that offer parity allocation of liquidity to customer orders, which enables competing orders at the same price point to share executions. Other exchanges’ order priority is based only on price and time. Order parity is valuable for day traders that bid or offer because they have a better chance of buying and selling; they don’t have to be the first to bid or offer at a price point.
Many professional and experienced traders are routing to NYSE floor brokers to capture the bid-offer spread. Some of the most active parity stocks are:
Citigroup Symbol: C Bank of America: BAC Ford: F Sprint: S There is a chance that other exchanges may start an order parity system. I encourage other exchanges to create similar order systems, as this will ensure that the market stays competitive. Traders’ demand for order parity has prompted DAS Trader (day-trading platform) to install point-to-point connections to those NYSE floor brokers, making this feature accessible to its traders.
For more info on NYSE order parity: http://www.nyse.com/pdfs/fact_sheet_parity_priority.pdf
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