TRADING VENUES

NYSE MKT to close trading floor in favour of tech platform

Regulatory filing has said NYSE MKT will transition floor-based trading to new Pillar technology platform.

By Hayley McDowell hayley.mcdowell@strategic-i.com January 11, 2017 11:32 AM GMT

The New York Stock Exchange’s NYSE MKT is set to close its trading floor in the second quarter this year, transitioning to its new ‘Pillar’ technology platform.

A regulatory filing explained the exchange proposes to close its floor-based trading of cash equities and switch to a fully automated, price-time allocation model.

“The exchange is proposing to replace its floor-based Designated Market Makers (DMM) with electronic DMMs, and would no longer have floor brokers or support supplemental liquidity providers as a separate class of participant on the exchange,” the regulatory filing said.

NYSE’s Pillar platform was implemented in January 2015 and was designed “to use a single specification for connecting to the equities and options markets operated by the exchange,” NYSE said.

NYSE MKT offers trading in approximately 250 small-cap companies and was acquired by NYSE Euronext in 2008 for $260 million.

The exchange closed its Amex equities trading floor and migrated to the NYSE trading floor in 2009.

New York Stock Exchange, NYSE Amex Options and NYSE Arca Options will still operate floor trading.

The closure and migration is subject to regulatory approval and is expected to occur in the second quarter of this year.