Wednesday, April 13, 2011

Markets In Everything: Cocktail Parties at the NYSE

NEW YORK -- "What do you do when a cathedral of capitalism becomes antiquated? You turn it into New York's best party space. Think black tie, not Black Monday.

The New York Stock Exchange has lost most of its famous shoulder-to-shoulder bustle in the age of computerized trading. So it's hoping its status as an icon of American finance will be a popular draw for cocktail receptions, analyst presentations and other festivities.

The exchange, where traders have nervously watched tickers and shouted orders for more than 100 years, is already available for some events. It wants to expand to 1,000 a year, double the number from three years ago."

7 Comments:

At 4/13/2011 11:03 AM, Blogger Buddy R Pacifico said...

The NYSE, on Wall Street, would seem to be a great place for NYSE listed cos. to stage annual meetings.

 
At 4/13/2011 11:16 AM, Blogger juandos said...

It couldn't also be that Deutsche Boerse might want to dump and old building in an area that probably has very high property taxes?

 
At 4/13/2011 2:31 PM, Blogger Methinks said...

The last time I visited the floor was in 2005 and most of the stations were completely empty. Wires stuck out where computers used to be. What a contrast to the early 1990's - but, the market is better for it. No longer are customer orders subject to the whims of the den of thieves on the floor. It's telling that many locals couldn't make the move to electronic trading (not that the NYSE had locals, but the NYSE floor is no more populated than any other).

 
At 4/13/2011 5:15 PM, Blogger morganovich said...

methinks-

"It's telling that many locals couldn't make the move to electronic trading"

no kidding.

it's also funny to watch all these exchanges try to buy each other to maintain scale while the ECN's and dark pools keep taking volume.

 
At 4/13/2011 8:21 PM, Blogger Methinks said...

Morganovich,

Our exchange is up in arms about dark pools. They have a point - the adverse selection for orders actually going to the floor is quite high. Those orders have been shopped around pretty well before they go to the floor - where highly regulated market makers must then discharge their duty.

I don't know what your opinion on
dark pools is, but I see them as a way around the over-regulated-way-past-the-point-of-insanity market structure. Essentially, a black market where markets are made in the absence of asinine regulation.

 
At 4/14/2011 11:22 AM, Blogger morganovich said...

methinks-

i am friends with the founders of liquidnet.

i see the dark pools as an excellent example of free enterprise in action.

they are a great way to move large blocks of stock without getting front run by a broker or a specialist and without trumpeting to the world that you are trading or even advertising a block.

i see them as an actual "honest broker" as opposed to the actual brokers who tend to act in ways that oppose their clients best interests.

the number of times i have given a block order to a market maker only to see the price move wildly without my getting filled (particularly on the amex) makes it pretty clear to me why the dark pools are generating so much volume.

institutions go where they get the best price.

i am actually surprised that the exchanges have not launched a more effective campaign to get the dark pools regulated. though this premise would be highly questionable legally, since when has that ever stopped anyone?

 
At 4/14/2011 2:31 PM, Blogger Methinks said...

Oh, the AMEX! Legendary! I'm surprised it lasted as long as it did.

It's a long discussion, but I think the model is changing for exchanges. Plus, they've all been bogged down implementing new idiocy from the SEC over the past couple of years.

I'm all for dark pools.

 

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