Markets In Everything: Cocktail Parties at the NYSE
CARPE DIEM
Professor Mark J. Perry's Blog for Economics and Finance
Wednesday, April 13, 2011
About Me
- Name: Mark J. Perry
- Location: Washington, D.C., United States
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
Previous Posts
- Retail Sales Increase for 9th Month to Record High
- 11 Comeback Cities for 2011
- Sowell: End Transfer Payments to Billionaires
- Next Equal Occupational Fatality Day in 2022
- "Super-Rich" Aren't the Same from Year to Year
- The Megabus Effect: A Great Success Story of Low-C...
- Rising Commodity Prices Do Not Necessarily Lead to...
- How Shale Gas Snuck Up on the Beltway Elites and H...
- Tax Deadline Approaches: Bring Us Back to 1913
- Huge Gender Gaps in Educational Attainment
7 Comments:
The NYSE, on Wall Street, would seem to be a great place for NYSE listed cos. to stage annual meetings.
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?
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).
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.
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.
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?
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.
Post a Comment
<< Home